IATA urges airlines to turn digitalisation into savings, better passenger experience

IATA urges airlines to turn digitalisation into savings, better passenger experience

The Star Online - Business·2026-10-28 19:00

KUALA LUMPUR: The International Air Transport Association (IATA) has urged airlines to turn advances in artificial intelligence (AI), digital payments and digital identity into more efficient operations, better passenger experiences and stronger financial resilience.

Speaking at the opening of the IATA World Financial Symposium and World Passenger Symposium in Macao, IATA interim director general, chief financial officer and senior vice-president of corporate services Sandrine Le Borgne said the industry must focus on realising the benefits of digitalisation while retaining control of its data and commercial relationships.

The transition to modern airline retailing based on Offers and Orders systems is under way, with seven airlines operating or implementing Orders and more than 20 expected to follow from 2027. Technology providers have committed more than US$1.7 billion to Offers and Orders.

“Offers and Orders are the foundation; AI is the accelerator. They need to move forward together as AI increasingly reshapes how travel is discovered, sold, and serviced,” said Le Borgne.

IATA also highlighted the financial implications of digitalisation, with airlines spending more than US$24.5bil annually processing payments.

It said new payment methods must be assessed for their impact on costs, cash flow and risk, while reconciliation, settlement and revenue accounting should be integrated into system upgrades from the outset.

Biometrics could make airport processing faster, but country- and airport-specific systems limit their wider benefits. IATA said governments must take steps to issue and accept digital travel credentials, building on standards developed by the International Civil Aviation Organization.

More than eight in 10 passengers have expressed interest in using a digital passport for check-in, IATA said.

The 2026 symposiums are being held in North Asia for the first time. Chinese airlines carried a record more than 770 million passengers in 2025, highlighting the need for technology investment to support growth and improve efficiency.

Le Borgne said common global standards would help turn regional digital advances into better passenger experiences worldwide.

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