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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
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