Artificial intelligence is fast becoming mission-critical across industries – and aviation is no exception. From predictive maintenance to hyper-personalised service, AI holds the key to unlocking transformative gains in efficiency, customer experience, and profitability.
For airlines, the potential is staggering: by 2035, AI could help the industry save up to $42 billion through smarter automation and more personalised offerings. Pushing this even further, AI-driven innovations could reduce costs by up to 30% across operations, from seat management to service automation.
Yet despite this promise, many airlines remain tethered to outdated, siloed legacy systems – dragging down the pace and impact of innovation. Whilst the sector is taking steps toward digital transformation, these fragmented systems are a major barrier to fully realising the value of AI.
Travellers are already favouring digital-first carriers, and the gap between tech-forward airlines and their lagging competitors will only widen. If airlines don’t act decisively, it could leave over $40 billion in potential revenue on the table. The message is clear: the runway for transformation is open – but the clock is ticking.
Leaving legacy systems in the past
Legacy systems have long been the backbone of airline’s operations but are one of the industry’s biggest blockers for future growth. Deeply entrenched into an airline’s technology stack, legacy infrastructure is often difficult and expensive to replace, and unable to integrate seamlessly with more advanced solutions.
As airlines prepare to move forward, switching technological gears will be crucial to soar ahead digitally and financially. According to IATA data, the airline industry has a net profit margin of just 3.7%. By comparison, profit margins in the robotics and automation industry were recently reported at 19.2%, over 5 times higher than the aviation industry.
Every measure to improve profitability matters, and even the smallest mishap could cost airlines thousands and even lead to operations folding. Take the CrowdStrike Outage last year for example – some airlines suffered an economic loss of up to £500 million.
Legacy systems weren’t created with the flexibility to adapt to sudden global changes, hindering airlines’ ability to pivot their strategy in unusual circumstances. To avoid the financial fallout of future sudden events, adopting advanced digital tools, for example predictive software that can anticipate market changes and guide airlines to change strategic routes, is an imperative for businesses to succeed.
For the airline industry, as well as in many other legacy tech-reliant sectors, outdated systems are causing information to become siloed, limiting AI from accessing all the relevant information needed to fuel it. For example, without access to the most up-to-date relevant information, customer interactions with chatbots are limited, and they could even be given the wrong information. For airlines to reach new heights in championing the customer experience, legacy systems must be left behind.
Embracing total digital transformation
To reap the benefits of AI and maximise returns on investment, AI strategies must go beyond simply adopting new technologies. Choosing the right AI solution could be a catalyst to achieving business-specific goals. Ensuring that AI integrates seamlessly with the entire technology ecosystem is important for airlines to realise the true time-saving potential of AI software, streamlining operations and enabling airlines to adapt to changing circumstances.
Modernising airline infrastructure with AI and digital systems doesn’t just improve operations, though. Not only can AI forecast potential shifts in the global travel atmosphere, but intelligent tools can also identify areas to improve income beyond ticket prices. By unlocking new revenue streams, for example by delivering personalised deals to travellers based on previous behaviours and engagement, airlines can improve their services and success across all areas of their business.
And for travellers, the benefits go beyond cost. Smarter systems provide timely, clear updates on travel, meaning smoother journeys. Automated communication facilitates the passenger experience from check in to arrival. Delayed flight? The airport transfer you’ve booked already knows and your hotel has been made aware of your new check-in time.
And with streamlined operations to support airlines manage changes behind the scenes, airlines will report fewer delays and enhanced overall customer satisfaction.
AI adoption is no longer an option
Adopting AI is no longer just a boardroom discussion. Integrating autonomous tools into technology stacks is an imperative for airlines to keep up to date with industry-wide modernisation and stay on ahead of sudden occurrences.
The potential of AI to untap new streams of income, deliver high-quality customer interactions and strengthen loyalty, shows the potential of intelligent tools to generate income far above the initial costs of implementation. AI is giving airlines more flexibility and resilience in the face of delays, able to support in troubleshooting potential issues before they arise. And the benefits of AI are exponential, enabling airlines to scale operations effectively and manage any potential disruptions.
Moving away from legacy infrastructure is a necessity for airlines to keep up with industry-wide digital acceleration. And by embracing new AI technology, airlines will be fuelled to soar to new heights.
