SITA: 2023 IT Spend for Airlines and Airports on the Rise
According to the latest Air Transport IT Insights report by SITA, a leading airline industry technology provider, IT spend by airlines and airports in 2023 has witnessed an increase compared to the previous year. Furthermore, more than two-thirds of surveyed airline and airport chief information officers expect this growth to continue into 2024. This positive trend indicates the growing importance of technology in the aviation industry.
In 2023, airlines planned to spend $34.5 billion on IT, which is a significant increase from the $30 billion spent in 2022. Similarly, airports planned to invest $10.8 billion in IT, up from $8.8 billion the previous year. These substantial figures showcase the commitment of airlines and airports to enhance their technological capabilities and provide better services to passengers.
To compile this report, SITA surveyed over 250 senior airline and airport executives between August and November 2023. These executives represented a quarter of global passenger traffic, making the findings comprehensive and representative of the industry’s trajectory.
Regarding IT investment priorities for airlines, cybersecurity ranked at the top with 97 percent of respondents prioritizing it. This emphasis on safeguarding digital assets is crucial in an era of increasing cyber threats. Other key investment areas for airlines include passenger services (95 percent), cloud services (95 percent), and business intelligent solutions (90 percent). Airports also focused on cybersecurity as their top IT investment priority, with 100 percent of respondents recognizing its significance. Furthermore, passenger processing (95 percent), commercial services (94 percent), and airport security (93 percent) were highlighted as crucial investment areas.
The survey also shed light on the evolving passenger identity verification landscape. Approximately 44 percent of airlines have already implemented touchless technologies, while 35 percent are using biometrics for this purpose. Looking ahead, 24 percent of airlines plan to implement touchless technologies by the end of 2026, and 35 percent intend to incorporate biometrics in the same timeframe. Airports are also heavily investing in biometrics, with 90 percent actively engaged in major programs or research and development related to this technology.
Another key area of technology investment for airlines and airports is business intelligence. Over the next three years, 73 percent of airlines plan to invest in major programs focused on leveraging data for actionable insights. Realizing the potential of generative artificial intelligence, airlines and airports are increasingly exploring AI and machine learning to unlock valuable information within their data. The report indicates that 97 percent of airlines and 82 percent of airports have plans to invest in AI by 2026.
The continuous growth in IT spend across the airline and airport sectors highlights the industry’s recognition of technology as a crucial enabler of improved services and enhanced passenger experiences. With a focus on cybersecurity, passenger services, and biometrics, airlines and airports are adapting to the evolving needs of the digital age. By investing in technologies like AI and machine learning, they aim to extract meaningful insights from data and streamline operations for greater efficiency.
This discourse between SITA and industry leaders showcases the commitment to technological advancements, ultimately benefitting passengers and travelers worldwide. With IT spend predicted to increase further in 2024, the aviation industry continues to embrace technology to deliver safe, secure, and streamlined experiences for all.
