This report identifies key demand-side trends in the airlines and airports industry that can help enterprises fine-tune their digital strategies. It also provides an overview of enterprise challenges in the industry based on Avasant’s assessment.

Why read this Market Insights?

Airlines and airport enterprises are collectively advancing toward AI-driven, digitally integrated operations to improve efficiency, revenue, and passenger experience. They are deploying agentic AI to automate complex workflows, including flight rerouting, crew optimization, real-time offer generation, and airport coordination. To support seamless and contactless travel while meeting regulatory mandates from the International Civil Aviation Organization and the International Air Transport Association, they are adopting interoperable biometric identity systems that enable a frictionless end-to-end journey. At the same time, airlines are shifting to AI-powered dynamic pricing and modern retailing models to optimize ancillary revenues and transition loyalty programs toward spend-based structures. Strengthened cybersecurity measures, such as zero-trust architectures and advanced SOC capabilities, are being implemented to protect critical aviation systems. Additionally, organizations are leveraging AR/VR, digital twins, and generative AI copilots to accelerate workforce training, enhance safety, and address talent shortages.

The Airlines and Airports Digital Services 2026 Market Insights™ aids enterprises in this sector in identifying important market trends and challenges for any digital project they participate in.

Methodology

The industry insights presented in this report are based on our ongoing interactions with enterprise CXOs and other key executives, targeted discussions with service providers, subject matter experts, and Avasant Fellows, analyst insights from primary and secondary research, and lessons learned from consulting engagements.

Table of contents

About the report (Page 3)

Executive summary (Pages 5–10)

• • Definition and scope of the airlines and airports industry
  • Airlines and airports digital services: Value chain matrix​
  • Key drivers and enterprise response
  • Avasant recognizes 26 top-tier providers supporting the airlines and airports industry in digital transformation

Demand-side trends (Pages 11–16)

• • As IROP disruptions cost each carrier $50M–$200M annually due to expensive recovery and tight margins, demand for autonomous systems is rapidly increasing
  • Growing demand for contactless travel, regulatory mandates, and capacity pressures are pushing airports to eliminate physical document checks
  • Declining ticket yields are exposing significant pricing inefficiencies, with airlines leaving 3%–8% revenue unrealized and allowing 15%–25% of passengers to pay less than they are willing; this is accelerating the shift to AI-driven dynamic offers and NDC
  • Rising cyber risks, regulatory pressure, and reliance on digital and OT systems are leading to higher investments in cybersecurity
  • Rising talent shortage and training costs are driving the need for rapid skill readiness in safety-critical environments

Key contacts (Page 17)

Read the Research Byte based on this report. Please refer to Avasant’s Airlines and Airports Digital Services 2026 RadarView™ for detailed insights on the service providers and supply-side trends.