Top 5 Trends Propelling the Airline Industry

Artificial intelligence-powered operations forecasting

In 2024, IATA predicts industry-wide passenger traffic will recover to 2019 levels. However—normal flight schedules may not, and airlines will need new tools and ways of working to keep passengers in the know and avoid outsized penalties from delays.

Weather- and climate-related delays continue to account for more than 75 percent of delays overall, and some passengers are even beginning to change travel destinations to avoid extreme temperatures. In the long term, the European Commission forecasts that higher temperatures will migrate tourists to colder climates in Northern Europe for their summer holiday, instead of the Mediterranean.

Using global weather data, historical flight operations data, social media data and more, artificial intelligence (AI) algorithms can predict and even prevent flight delays and cancellations due to weather, increasing customer satisfaction, employee efficiency and reducing airline costs. 

Digital-first crew experience journeys

The airline industry continues to face a staff shortage, and it’s time for innovative technology solutions to take flight.

In the U.S. alone, the industry is experiencing a continued employment gap of pilots, crew members, air traffic controllers and mechanics, according to the U.S. Department of Transportation and U.S. Department of Labor.

While many airlines are boosting incentives for new employees, rethinking the employee experience journey holistically, from digital training to flexible scheduling platforms, will promote industry-wide retention in the long run.

Airlines should evaluate their employee experience journeys in tandem with their customer journeys to ensure seamless interactions—from retrieving lost baggage to rebooking flights, making sure that real-time customer data is centralized and accessible at all times for both parties.

Learn more about Publicis Sapient’s Customer and Employee Experience Journey Solution

Emotional airline loyalty programs

Today, behavior-driven loyalty programs aren’t enough to entice airline passengers. Almost half of millennials, specifically, have changed their airline loyalty in the past year, according to a 2023 OAG survey. At the same time, more than 20 million U.S. travel loyalty members alone faced a status downgrade in 2023, due to COVID-related decreases in travel.

In this situation, loyalty members attracted by the discounts and the convenience of their status were willing to switch to whichever airline provided the most convenient or discounted option. And while inflation hasn’t slowed leisure travel demand, customers are looking for the airline with the best deal.

Conversely, emotional airline loyalty programs drive passengers to identify with a specific airline, be airline ambassadors and make habitual buying decisions that defy rational explanation.

How can the aviation industry make the shift? Airlines can resegment their loyalty programs based on customer interests and values instead of purchase frequency. Partnering with brands across industries and centralizing this customer data will help airlines inform new segments. Starbucks and Delta’s loyalty partnership, for example, allows passengers to redeem Delta points with their weekly beverage purchases in between their trips.

Sustainable aviation fuel supply chain planning

As airlines experiment with sustainable aviation fuel (SAF) to reduce greenhouse gas emissions (GHG), challenges surrounding SAF production, supply and demand, as well as carbon emissions tracking, require innovative solutions.

Experts predict that SAF will only account for 65 percent of airline fuel in 2050, well below the U.S. goal of 100 percent. In order to come close to net zero goals, airlines will need to significantly increase investment into production companies, fuel and research and development. How can airlines make progress while balancing costs?

Industry-wide SAF supply chain partnerships are crucial to scaling the issue of SAF availability. Airlines that have the digital backbone to track their emissions, trace fuel across the supply chain and share data with partners will be able to lead the industry and stay ahead of inventions and disruptions in the space.

Publicis Sapient can help airlines balance and track SAF, tax credits and overall carbon emissions