The aviation industry saw billions of dollars in IT investments in 2023, as companies sought to improve passenger experience and support sustainability efforts, according to a new report by SITA.

Total IT spending by airlines and airports around the world increased to an estimated $34.5 billion and $10.8 billion, respectively, the aviation IT firm said on Tuesday.

According to the SITA 2023 Air Transport IT Insights report, IT-related investments have increased, as companies seek to improve efficiency, protect operations against any disruption and streamline processes for travellers and staff.

Aviation businesses are likewise looking to AI and machine learning, with the rise of generative artificial intelligence.

Airlines and airports are also investing in IT solutions for business intelligence (BI), artificial intelligence and data sharing.

“As we approach a full recovery of passenger demand for air travel, with domestic travel even surpassing pre-pandemic levels in some regions, airlines and airports have learned from the congestion and disruptions seen in the past two years,” said David Lavorel, CEO of SITA.

“Advanced data sharing and analytics tools will allow them to unite stakeholders and identify opportunities for greater efficiency and leaner operations.”

Continued growth

Corporates in the sector are likely to further boost IT budgets this year, with more than two-thirds of airports expecting continued growth into 2024.

Among their plans, CIOs are looking to invest in technology solutions to support emission reduction goals.

As for airports, investment in energy management systems is forecast to grow the most of any airport sustainability initiative, with over half of them planning this by 2026.

Also by 2026, more than 90% of airlines plan to have IT in place to boost the efficiency of flight operations and aircraft turnaround.

The report is based on research conducted from August to November 2023. It represents the views of more than 250 senior airline and airport executives, covering a quarter of global passenger traffic.

(Writing by Cleofe Maceda; editing by Seban Scaria) seban.scaria@lseg.com