IATA Urges Airlines to Harness AI, Digital Payments for Better Passenger Experience

The International Air Transport Association (IATA) has called on airlines to accelerate the integration of artificial intelligence (AI), digital payments and biometric identification into their operations to improve passenger experience, enhance operational efficiency and strengthen the industry’s financial resilience.

The association said the growing adoption of digital technologies across airline retailing, payment systems and passenger identification presented significant opportunities for the aviation industry, but stressed the need to translate these innovations into measurable benefits for airlines and travellers.

Speaking at the opening of the IATA World Financial Symposium (WFS) and World Passenger Symposium (WPS) in Macao, IATA’s Interim Director General, Chief Financial Officer and Senior Vice President, Corporate Services, Sandrine Le Borgne, said the industry had reached a stage where it needed to maximise the value of its investments in digitalisation.

“Today, a traveller 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 realising the value that these innovations can create to make travel more efficient and improve financial resilience,” Le Borgne said.

She explained that although digital tools were changing how passengers planned, purchased and experienced air travel, airlines needed to ensure that these technologies also delivered sustainable financial and operational benefits.

According to IATA, the industry’s digital transformation must address the entire passenger journey, from the initial search for flights and the purchase of tickets to payments, airport processing and post-travel financial reconciliation.

A key area requiring attention is the emergence of AI assistants and automated agents, which are increasingly influencing how travellers discover, compare and purchase travel services.

IATA said the development presented both opportunities and risks for airlines, particularly as AI-powered platforms could change the relationship between carriers and their customers.

For airlines, adapting to this evolving marketplace would require strategies that allow them to benefit from emerging technologies while retaining control over their data, commercial relationships and the quality of information used to distribute their products.

The association identified Modern Airline Retailing, which is built around the Offers and Orders framework, as central to this transition.

The framework is designed to modernise how airlines create, sell and manage travel products, moving away from fragmented processes towards a more integrated approach to retailing and customer service.

IATA disclosed that seven airlines were already operating or implementing Orders, with more than 20 additional airlines expected to follow from 2027. It also said information technology providers had committed more than $1.7 billion to the development of Offers and Orders capabilities.

Le Borgne stressed that airlines needed to advance these initiatives alongside the adoption of AI rather than treat them as separate digital projects.

“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,” she said.

Beyond passenger-facing technologies, IATA highlighted the importance of integrating financial management into the industry’s digital transformation to ensure that innovation strengthens profitability and reduces operational complexity.

The association pointed to payment processing as a major area where airlines could improve efficiency and manage costs more effectively.

According to IATA, airlines spend more than $24.5 billion annually processing payments, making the financial implications of new payment methods an important consideration for the industry.

Although digital wallets and other emerging payment options can provide passengers with greater convenience and choice, IATA said airlines must carefully assess their effects on transaction costs, cash flow and financial risks.

The association also emphasised the need to incorporate reconciliation, settlement and revenue accounting into the transition to Offers and Orders from the outset.

It argued that digital transformation should simplify existing financial processes rather than merely transfer complicated procedures to new technology platforms.

IATA said a more integrated approach to financial management would help airlines reduce inefficiencies, improve the handling of transactions and strengthen their financial sustainability as the industry expands its digital capabilities.

Biometric identification and digital travel credentials were also identified as important elements in efforts to make air travel faster and more convenient.

The association noted that biometrics were increasingly being incorporated into airport procedures, helping to streamline passenger processing and reduce the need for repeated document checks.

However, it warned that the benefits remained limited because many existing solutions were developed for individual airports or specific countries, making it difficult for passengers to enjoy a seamless experience across international borders.

IATA said governments had a critical role to play in addressing this challenge by issuing and accepting digital travel credentials that could be recognised across jurisdictions.

The International Civil Aviation Organisation (ICAO) has established standards for secure digital passports through its Digital Travel Credential framework, providing a basis for wider international adoption.

Passenger interest in the technology is also growing. IATA said more than eight in 10 passengers had indicated that they were interested in using a digital passport to check in.

The association maintained that broader adoption would depend on governments taking practical steps to issue and accept digital travel credentials, supported by international standards that enable different systems to work together.

According to IATA, greater interoperability would allow passengers to benefit from digital identity solutions throughout their journeys rather than having to navigate separate processes at different airports and national borders.

The 2026 editions of the World Financial Symposium and World Passenger Symposium are being held in Macao, marking the first time the events have taken place in North Asia.

IATA said the location reflected the region’s growing importance in digital innovation and the transformation of global air transport.

China’s aviation market was highlighted as a major example of the scale of opportunity available to the industry. According to the association, Chinese airlines carried more than 770 million passengers in 2025, setting a record.

IATA said the potential for further growth in the market would require continued investment, particularly in technologies capable of supporting increasing passenger volumes while making air travel simpler, more efficient and more sustainable.

Le Borgne said China’s contribution to aviation extended beyond the size of its market to its influence on digital innovation, particularly in the ways consumers shop, make payments and travel.

“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,” she said.

She added that maintaining a common set of global standards, while updating them as technology evolves, was essential to ensuring that innovations developed in individual markets could deliver benefits to passengers worldwide.

For IATA, the challenge facing the global aviation industry is therefore not simply to adopt new technologies but to ensure that digitalisation produces connected, secure and financially sustainable systems.

The association’s position underscores the need for airlines, technology providers and governments to work together to ensure that advances in AI, digital payments, airline retailing and biometric identification translate into better passenger experiences and a more resilient aviation industry.