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IT & Software

Airports’ IT spend reached US$10.8bn in 2023, SITA’s Air Transport IT Insights report finds

Elizabeth BakerBy Elizabeth BakerFebruary 8, 20243 Mins Read

SITA’s 2023 Air Transport IT Insights report found that airports and airlines saw IT spending increase year-on-year into 2023, reaching an estimated US$10.8bn and US$34.5bn respectively.

The research was undertaken from August to November 2023. It represents the views of over 250 senior airline and airport executives, covering a quarter of global passenger traffic.

The report found that over two-thirds of airport and airline chief information officers (CIOs) expect continued growth into 2024. Airports boosted IT spending as a percentage of revenue in 2022 and 2023.

The top investment priorities of aviation CIOs included a biometrically enabled passenger journey, leveraging data to unlock operational efficiencies, and green solutions to reduce energy consumption and emissions.

Over half of the studied airlines and airports implemented IT to improve efficiency across check-in, bag tag and boarding in 2023. Furthermore, 70% of airlines expect to have biometric ID management in place by 2026; 90% of airports are investing in major programs or R&D in this area.

CIOs are now reportedly looking to supplement passenger processing advancements with innovative solutions on the operations side. To boost efficiency, protect operations against disruption and streamline processes for passengers and staff, CIOs are embracing IT solutions for business intelligence (BI), artificial intelligence and data sharing.

According to the report, BI is the biggest area of technology investment for airlines in the coming three years, with 73% investing in major programs. Nearly two-thirds of airports and airlines collect and integrate data, and with the rise of generative artificial intelligence (AI), they are now looking to AI and machine learning to leverage this data and generate insights. With most citing the “use of data to improve operational efficiency” as at least somewhat of a business challenge, it makes sense that 97% of airlines and 82% of airports are investing in AI by 2026.

David Lavorel, CEO of SITA, said, “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. Advanced data sharing and analytics tools will allow them to unite stakeholders and identify opportunities for greater efficiency and leaner operations. Solutions like total airport management and BI for passenger processing provide airports and airlines with real-time insight into the management of assets and passenger flow, allowing for agile, collaborative responses to any disruptions.”

Sustainability was also found to be high on the agenda, with industry milestones for carbon reduction as well as regulations on emissions coming into view. The research reports that CIOs are setting their sights on technology solutions that can deliver concrete emissions reductions.

By 2026, over 90% of airlines plan to have IT in place to boost the efficiency of flight operations and aircraft turnaround. More than half have implemented IT to optimize both aircraft taxiing and the takeoff/landing and cruise phases of flights, with nearly all expecting to have this in place by 2026.

On the airport side, building and energy management systems are a key priority for offering a unified view of emissions and opportunities to reduce them. Investment in energy management systems is expected to grow the most of any airport sustainability initiative, with over 50% of airports planning this by 2026.

“With industry ambitions to achieve net-zero CO2 emissions by 2050 in mind, airlines and airports are taking necessary steps toward reducing their carbon footprint, adopting digital tools for accurate monitoring and optimization of energy consumption and emissions,” Lavorel added.

Read more of the latest IT and software updates from the passenger terminal industry, here.

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