HomeTechnology & InnovationAirline IT spending expected to increase in 2023
By Economy Middle East
February 1, 2023 6:50 pm

Airline IT spending expected to increase in 2023

In 2022, airline IT spending rose to an estimated USD37 bn
Airline IT spending
Airline IT spending

The airline industry’s IT spending is projected to continue its steady year-on-year growth trend since 2020 to support this push for digitalization, with a full 96% of airlines and 93% of airports expecting their IT spending to stay the same or increase in 2023 compared to 2022, according to a new report from air transport IT provider SITA.

Last year airline and airport IT spending rose to an estimated $37 billion and $6.8 billion respectively.

Read more: Where do MENA businesses spend the most money on?

The new study reveals that with the post-pandemic recovery, Chief Information Officers (CIOs) want to ensure operations are as agile and resilient as they are efficient, with IT solutions seen as central to their success. This has spurred an acceleration of digitalization, with airlines and airports looking to key technology solutions to fortify their operations against disruption while automating the passenger experience.

Additionally, the report highlighted that the airlines are placing great emphasis on IT tools to manage irregular operations and provide the best passenger experience possible even amid staff shortages. Over the next three years, 90% or more of airlines are investing in IT service management enhancement and disruption warning systems, as well as business intelligence initiatives for aircraft turnaround management, passenger processing, and baggage processing.

SITA further observed that business intelligence solutions are at the forefront of airport IT investment priorities too, with 93% or more planning business intelligence initiatives for asset management and flight operations by 2025.

Both airlines and airports are investing in key technologies to smooth the passenger experience across every step of the journey, to help curb bottlenecks and in turn allow redistribution of key staff resources to focus on more complex tasks. Biometrics and self-service technologies are seeing major emphasis, the report concluded.

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