IATA urges airlines to ensure digitalization improves passenger experience

by Athirah Ghazali • -65 min ago
IATA urges airlines to ensure digitalization improves passenger experience

Global aviation leaders gathered in Macao to discuss how airlines can turn recent digital advances into smoother passenger experiences and stronger financial health. The International Air Transport Association (IATA) emphasized that while travelers can now use artificial intelligence for planning, pay with digital wallets, and use biometrics at airports, the industry must ensure these tools actually create value rather than just adding complexity.

Preparing for the marketplace of the future

AI assistants and automated agents are reshaping how travelers discover and compare trips. This shift presents airlines with a difficult balance: they must prepare for the future while keeping control of their data and commercial relationships. Maintaining the quality of underlying data remains essential for success.

Modern Airline Retailing is central to this adaptation. Seven airlines have already implemented the new system, with more than 20 expected to join by 2027. IT providers have committed over US$1.7 billion to the development of Offers and Orders. Le Borgne noted that these systems act as a foundation, while AI serves as an accelerator that reshapes how travel is sold and serviced.

Strengthening financial sustainability

Aviation leaders stressed that digital investments must be viewed holistically to improve financial resilience. Payments represent a significant area of focus, with airlines spending more than US$24.5 billion annually to process transactions. New digital payment methods may offer customer choice, but they also impact costs, cash flow, and risk.

The transformation of Offers and Orders must include reconciliation, settlement, and revenue accounting from the start. Without this integration, digitalization can create more problems than it solves. Biometrics are becoming standard for faster airport processing, yet their value remains limited because many solutions are specific to individual airports or countries. Wider adoption of digital identity could improve this situation, though it depends on governments issuing and accepting secure digital passports.

The 2026 World Financial Symposium and World Passenger Symposium will take place in North Asia for the first time, reflecting the region’s growing influence in digital innovation. China’s airlines carried more than 770 million passengers in 2025, a record figure that suggests continued growth is possible. Capturing this opportunity requires technology that supports expansion while making travel simpler and more efficient.

Government Role in Digital Identity

Secure digital passports already exist through ICAO standards. Leaders emphasize that governments must issue and accept these credentials to help travelers check in more easily. High passenger interest supports wider adoption, though it depends on regulatory action.

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