Airlines and airports in the Middle East and Africa (MEA) have significantly increased their technology investments over the past year, but uneven spending priorities are undermining the overall impact, according to a new industry report.

The Air Transport IT Insights 2025 study by SITA draws on surveys of 70 airlines and 370 airports worldwide. It comes as the aviation sector faces mounting challenges, including rising fuel costs, supply chain constraints, and geopolitical tensions.

The report shows that airlines in the MEA region are leading the push toward digital transformation. All surveyed carriers increased their IT budgets in 2025, marking the strongest commitment globally. By contrast, only 44 percent of airports in the region raised their technology spending, while 12 percent indicated plans to reduce investment.

This disparity is reflected in digital readiness. Around 69 percent of airlines in the region have established data platforms, compared with just 26 percent of airports—the widest gap recorded worldwide.

According to SITA, the lack of alignment between stakeholders is limiting the benefits of record technology spending. Without seamless data exchange between airlines, airports, ground handlers, and government authorities, operational efficiency gains remain constrained.

Globally, the aviation industry invested $50.8 billion in technology in 2025. However, fragmented systems and limited coordination continue to restrict returns. The report notes that the absence of real-time operational visibility hampers decision-making, increases costs, and reduces the ability to respond quickly to disruptions.

The financial impact is already evident. The International Air Transport Association estimates that delays alone cost the industry around $30 billion annually, a figure exacerbated by ongoing disruptions linked to conflicts in the Middle East and other global pressures.

Industry analysts say the findings highlight structural challenges in how aviation stakeholders approach technology investment. Airlines, which control their own operations and customer data, have been quicker to adopt advanced tools such as artificial intelligence and data analytics. Airports, however, operate as multi-user environments involving airlines, regulators, and service providers, making coordination more complex.

Selim Bouri, SITA’s president for the Middle East, Africa and Türkiye, warned that the divergence in investment strategies is a growing concern. He noted that traditional approaches, such as expanding airport infrastructure or increasing fleet size, are no longer sufficient to meet rising demand or manage increasingly complex disruptions.

While airlines are investing heavily in digital solutions to improve efficiency and sustainability, many airports remain focused on long-term physical expansion projects. This imbalance can create bottlenecks, offsetting gains achieved in the air with inefficiencies on the ground.

The report suggests that technology-driven solutions could deliver faster and more cost-effective results. Around 40 percent of airlines are already using AI-based tools to optimise flight routes and reduce fuel consumption, achieving savings of between three and 10 percent per flight.

However, the benefits of such innovations remain limited without system-wide integration. Currently, only about 20 percent of airlines and 40 percent of airports share operational data with key partners in real time.

Bouri attributed this to the complexity of the aviation ecosystem, where multiple stakeholders rely on different systems and data standards. While integration technologies are available, progress depends on coordinated investment and the adoption of common frameworks.

Efforts are underway to address these challenges through industry initiatives focused on standardising digital identity systems and data formats. Nevertheless, infrastructure gaps—particularly in developing regions—remain a significant barrier. More than half of airports worldwide still prioritise basic IT and telecommunications upgrades.

Financing constraints further complicate progress. Airport operators often depend on government funding and partnerships with airlines, leading to lengthy negotiations over cost-sharing arrangements. In regions with limited resources, this slows the pace of digital transformation.

Despite these challenges, the report highlights opportunities for emerging markets, particularly in Africa, to adopt modern, scalable technologies without the burden of legacy systems. By implementing modular and interoperable solutions from the outset, airports could accelerate returns while preparing for future growth.

In 2025, airlines globally allocated $36 billion to IT spending, representing 3.6 percent of revenue, while airports invested $14.8 billion, or 7.3 percent of revenue. Much of this funding is directed toward improving operational resilience, including real-time flight management, passenger processing, and customer service systems.

Artificial intelligence is becoming a central focus. The report finds that 63 percent of airlines already use AI in operations control for disruption management, aircraft allocation, and crew scheduling. A further 79 percent plan to prioritise generative AI technologies in the coming year.

However, SITA CEO David Lavorel said the next phase of digital transformation will depend less on new tools and more on connecting existing systems effectively. He emphasised that while the industry is investing heavily in AI, the lack of integrated data infrastructure remains the primary obstacle to maximising its potential.

Source: ZAWYA

Riyadh Air and Saudia have announced the implementation of the first phase of their Strategic Cooperation Agreement, marking a major step in strengthening connectivity under Saudi Arabia’s National Aviation Strategy.

The partnership builds on a Memorandum of Understanding signed in November 2023 and enables the two airlines to expand travel options for domestic and international passengers.

As part of the first phase, Riyadh Air has established a connection with Saudia’s Passenger Service System (PSS), allowing the carriers to implement their codeshare across their respective technology platforms.

Under the RX-SV codeshare, Riyadh Air will place its “RX” designator on selected Saudia-operated flights from Riyadh’s King Khalid International Airport to six domestic destinations: Abha, Al Qassim, Dammam, Jeddah, Medina and Tabuk.

The agreement will give Riyadh Air passengers access to additional destinations worldwide through convenient connections in Riyadh. For example, travelers from Dammam can connect via Riyadh to Madrid on a single ticket, while passengers flying from Kuala Lumpur can connect through Riyadh to Medina.

By using Saudia’s frequent services between Riyadh and the six codeshare destinations, Riyadh Air will offer passengers more convenient connections aligned with the arrival and departure schedules of its flights at Riyadh.

Both airlines operate within the King Khalid International Airport Terminal 1-4 complex, enabling passengers to benefit from streamlined connections, single-ticket journeys and through-checked baggage to their final destinations.

The first phase represents a significant step toward deeper cooperation between Saudi Arabia’s two national carriers and supports the Kingdom’s broader ambitions to expand its global aviation network.

Source: aaco.org

SalamAir has announced the establishment of Salalah’s first-ever airline base, marking a major step in the airline’s expansion and strengthening direct international connectivity from Oman’s Dhofar Governorate.

The new Salalah-based operation will initially serve three international destinations: Jeddah in Saudi Arabia, Chattogram in Bangladesh and Calicut in India. Bookings opened on August 26, with flights scheduled to begin from the end of October as part of SalamAir’s Winter 2026 schedule.

The base follows SalamAir’s expanded operations during the 2026 Khareef season, when the airline increased capacity on the Muscat-Salalah route to as many as 15 daily flights during peak periods.

The airline also introduced special domestic fares for Omani nationals, with one-way tickets starting from OMR 9.99, supporting affordable travel between Muscat and Salalah.

The new base is expected to extend SalamAir’s role beyond the Khareef season by supporting year-round travel demand among residents and expatriate communities in Dhofar while offering more direct access to key regional and international destinations.

Operations from Salalah will be supported by SalamAir’s Airbus A320neo and A321neo fleet. The airline currently operates 18 aircraft, providing additional flexibility to support growing demand across its network.

During the winter season, SalamAir will also operate charter flights linking Salalah with Astana and Almaty in Kazakhstan, supporting inbound tourism from Central Asia.

The Salalah base forms part of SalamAir’s wider strategy to expand its network from key airports across Oman, develop underserved markets and stimulate new travel demand while supporting the growth of the Sultanate’s aviation and tourism sectors.

Source: ZAWYA