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IATA urges airlines to accelerate digitalisation for better passenger experiences

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 The International Air Transport Association (IATA) has called on airlines to turn advances in digitalisation across retailing, payments and digital identity into improved passenger experiences and greater financial resilience.

Speaking at the opening of the IATA World Financial Symposium (WFS) and World Passenger Symposium (WPS) in Macao, Sandrine Le Borgne, IATA Interim Director General, CFO and Senior Vice President, Corporate Services, highlighted the need to maximise the benefits of emerging technologies across the travel industry.

“Today, a traveler can use AI to plan a trip. They can pay with a digital wallet and use biometrics for a more seamless journey at the airport. The challenge now is realizing the value that these innovations can create to make travel more efficient and improve financial resilience,” said Le Borgne.

Preparing for the Marketplace of the Future

Artificial intelligence assistants and automated agents are changing how travellers discover, compare and purchase travel. While this creates new commercial opportunities for airlines, IATA said carriers must retain control of their data and customer relationships while ensuring data quality.

Modern Airline Retailing, based on the Offers and Orders model, is central to this transition. Seven airlines are already live or implementing Orders, with more than 20 expected to follow from 2027. Technology providers have committed more than US$1.7 billion to Offers and Orders development.

“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.

Strengthening Financial Sustainability

IATA stressed that financial operations must be integrated into digital transformation from the outset. Airlines spend more than US$24.5 billion annually processing payments, making the management of costs, cash flow and risk increasingly important as new payment methods expand customer choice.

The association also highlighted the need to incorporate reconciliation, settlement and revenue accounting into Offers and Orders transformation, reducing operational complexity rather than simply digitising existing processes.

Making Travel Easier Through Digital Identity

Biometrics are increasingly helping passengers move through airports more quickly and seamlessly. However, IATA said the benefits remain limited because many solutions are restricted to individual airports or countries.

Governments have a critical role in expanding digital identity for international travel. Standards for secure digital passports already exist through the International Civil Aviation Organization’s Digital Travel Credential, while more than eight in ten passengers have expressed interest in using a digital passport for check-in. Wider adoption will depend on governments issuing and accepting digital travel credentials.

China’s Digital Innovation Leadership

The 2026 WFS and WPS mark the first time the events have been held in North Asia, highlighting the region’s role in digital innovation. Chinese airlines carried more than 770 million passengers in 2025, setting a record and creating further opportunities for growth.

“China’s leadership is not only about scale. It has also been at the forefront of digital innovation, changing how people shop, pay, and travel. As we learn from one another, we must keep our solutions connected. We do this by having one set of global standards and evolving them as technology advances. That is how we turn regional progress into a better experience for passengers worldwide,” said Le Borgne.

IATA said continued investment in technology and globally aligned standards will be essential to making future air travel simpler, more efficient and sustainable. -TradeArabia News Service


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