Are Airline Industries upgrading? How does it Affect Air Travel?

Are Airline Industries upgrading? How does it Affect Air Travel?

Airline Industry Up-gradation and its Effect on Air Travel After the pandemic, various technologies are being adopted and discovered so that the airline industries can perform at their peak level.

The International Air Transport Association had announced an upgrade to its outlook for the airline industry after the Covid-19 crisis. The upgrade was among the recovery strategies for the airline industry.

However, even after Covid, the airline industry is showing good upgrade progress. Various technologies are being adopted and discovered so that the airline industries can perform at their peak level.

Revenue upgrade

The Airline industry's revenue is expected to reach $782 billion, which is 93.3 percent of the 2019 level. The passenger revenue is expected to reach $498 billion of the industry revenues, double the $239 billion generated in 2021.

The number of scheduled passengers flying is expected to reach 3.8 billion by the end of 2022. The cargo revenues are expected to be around $ 191 billion of the industry revenues. This is nearly double the $100 billion which was achieved in 2019.


The overall expenses are expected to rise to $796 billion. This accounts for a 44 percent increase, reflecting both the costs of supporting more extensive operations and the cost of inflation.

  • The fuel is the industry's most significant cost item in 2022 at $192 billion. Airlines are expected to consume 321 billion liters of fuel in 2022 compared to the 359 billion liters in 2019.
  • High oil and fuel prices will improve airlines' fuel efficiency by using more efficient aircraft and operational decisions.
  • Labour is the second-highest operational cost item of the airlines. Employment is expected to reach 2.7 million. Employment delays may be a constraint on airlines' ability to meet the demands of the passengers.

The industry's wage bill might reach $173 if the unemployment level is low, tight labor markets, and skill shortages will put upward pressure on the wages. There will also be an increase in the total number of jobs. This will be an economic impact on the Airline industry.

Adoption of Data Science and Advanced Analytics

Many airlines are adapting and developing their ability to accept data science and analytics. Increased use of data science and analytics will help airlines reinforce these sources to deliver a substantial performance improvement.

  • Airlines are using AI and machine learning to construct brilliant offers that combine seat and ancillary services to match customer requirements.
  • There will be a change in the offer price, moving away from traditional fare ladders towards continuous and dynamic pricing.
  • Marketing algorithms will also see a change. This will help airlines tailor messages to individual customers based on many factors. They are travel history, contextual variables, and the preference of the customers.
  • Airlines have to reduce their reliance on traditional technology providers, and instead, they must seek a hybrid approach. The following steps are kept in mind to capitalize on their growth in data science and analytics applications.
  • Ensuring that the data and advanced analytics capabilities are high on the agenda and prioritize investments and build a high-value program along with data strategy to support these initiatives.

Growth in Strategic Alliances and Partnerships

The industry is changing to membership as airlines leave and join new alliances due to mergers, joint ventures, and many other reasons. The global partnership focuses on improving customer service, like ensuring an excellent experience for travellers with itineraries involving more than one career in the alliance.

More bilateral and multilateral agreements are expected to see which are beyond the current global alliance. The airlines take the following steps to take advantage of the growth in strategic alliances and partnerships.

  • Identifying partnership opportunities to establish a position in new markets.
  • Accelerating the work within alliances to offer customer service innovations.
  • Anticipating potential competitor moves and implications for business and developing plans to respond.

Use of Robotics and Biometrics

The airline industry has also started using robotics to assist agents with various tasks like customer management, baggage handling, and car parking. The introduction of the Spencer Robot has changed the industry's outlook. The robot has been equipped to deal with social situations between people. It can also see and analyze people with its sensors. The robot acts in a user-friendly way.

The industry is constantly evolving to make travel experiences delightful and comfortable for its customers. The adoption of biometric technology is of great advantage. The biometric aims to create a secure air travel process.

Much biometrics enables single token platforms which revolutionize passengers' experience. Some include speeding up the check-in process, self-service biometric-enabled baggage drop, and many more.

Providing the Best Customer Service

The airline's interaction with customers mainly focuses on booking reference numbers containing essential data about the individual flight but not the person. The airline industry is trying to upgrade this. The airline industry is also trying to reduce their fare and offer cheap plane tickets to its customers.

Airlines are trying to build a single coordinated view of customers across all the systems and touch-points, and customers can expect a step-change in the degree of personalization. Loyalty programs are also crucial to becoming more customer-centric and giving them cheap tickets. In this way, they can capture more data and gain insight into the customer.

Effects the Air Travelling

The airlines are planning for a future technological product and market development along with governments and regulators for their long-term infrastructure and planning. Airport operators are considered for future capital expenditure.

To contemplate a future infrastructure design and development, the civil aviation authorities and air navigation service providers are working hard. The financial performance is going to improve in all regions.

  • North America will be the most vital performing region and the only region to earn more profits. With the opening of international markets and supported by the giant US domestic market, the net profit is estimated to be $8.8 billion.
  • For Asia-Pacific airlines, the travel demand is expected to increase quickly.
  • In the Middle East, re-opening international routes and long-haul flights will provide a welcome boost for many.

Yes, after covid-19, the airline industry is upgrading and is affecting future travelling. The upgrades and the changes in the airlines are dramatic. Many airlines are offering cheap flights for the convenience of the user. Cheap flight offers are occasionally announced by the airlines.

The management teams can either stick to the old business approach or take active steps to adapt and shape the industry's future and remove some current issues in the airline industry.