IATA: Data can help Central Asian airlines cut fuel costs

Tashkent, Uzbekistan (UzDaily.uz) — Airlines in Central Asia and the South Caucasus can gain additional opportunities to reduce fuel costs through more effective use of data and improvements to operational processes,.

According to International Air Transport Association (IATA) forecasts, global airlines will spend about US$350 billion on fuel in 2026, accounting for nearly one-third of their total operating costs. Rising fuel prices and volatility in energy markets are adding pressure to the industry’s financial performance.

IATA expects global airline profitability to decline from 4.2% in 2025 to 2% in 2026. Opportunities to offset higher costs solely through increased airfares remain limited.

Against this backdrop, fuel efficiency has become a key priority for airlines. In an IATA survey conducted in March 2026, 90% of airlines identified fuel efficiency as a priority. Among executives responsible for finance and procurement, the share was 96%.

The issue is particularly relevant for markets in Central Asia and the South Caucasus. In Kazakhstan, for example, jet fuel costs more than in comparable aviation hubs, including Dubai, increasing carriers’ expenses for the same volume of fuel consumption.

Until recently, fleet renewal was considered one of the main ways to improve fuel efficiency. Air Astana and Azerbaijan Airlines have invested in new-generation aircraft. Uzbekistan Airways is also introducing Boeing 787-9 and Airbus A321neo aircraft, which offer higher fuel efficiency.

Air Astana said in March that it had received eight Airbus A320 family aircraft in 2025 and retired three Embraer E2 aircraft. The airline said it currently operates its most standardized and fuel-efficient fleet in more than 20 years.

Azerbaijan Airlines received its fourth new aircraft of 2026 in July, an Airbus A320neo. Uzbekistan Airways, meanwhile, is using new Boeing 787-9 and Airbus A321neo aircraft to improve fuel efficiency.

However, IATA believes that after large-scale fleet renewal, airlines need to seek additional sources of savings. IATA Director of Flight and Operations Stuart Fox said the next stage of efficiency improvements would be driven primarily by the use of data in operational decision-making.

“As opportunities to improve efficiency further through fleet renewal or network changes have already been largely explored, the next gallon of fuel saved will increasingly come from better operational decisions based on data,” Fox said.

According to Fox, airlines need a deeper understanding of their own operations and high-quality benchmarking to compare their performance with that of other carriers in order to further reduce costs.

Some airlines in the region are already using this approach. Air Astana uses artificial intelligence to optimize fuel consumption and, according to the company’s own assessment, reduces fuel use by up to 2%. Uzbekistan Airways also uses data to optimize its operations.

IATA has access to real-time operational information from more than 240 airlines worldwide. According to Fox, sharing such data allows carriers to compare their performance and implement solutions tailored to their operational characteristics.

The association has developed the Fuel Efficiency Gap Analysis (FEGA) consulting service and the FuelIS analytics platform. They allow airlines to identify real-time opportunities to save fuel based on aircraft type, route, flight stage and geographic region.

Fox cited as an example a situation in which an airline systematically completes flights with more fuel remaining than carriers operating similar aircraft on comparable routes. Such analysis can identify opportunities to improve efficiency without compromising safety. The practices identified can then be incorporated into operational manuals and staff training programmes.

IATA also notes that savings opportunities exist beyond individual airlines. Some factors affecting fuel consumption are linked to other parts of the aviation system, particularly air traffic management.

Airlines depend on air navigation service providers to provide more efficient flight paths. IATA cites the use of more direct routes during approaches as one example that can reduce fuel consumption.

To improve the efficiency of air traffic management, IATA is promoting the modernization of air traffic control systems. One of the key tools in this area is Performance-based Navigation (PBN).

Over the past six years, IATA has implemented projects in Azerbaijan, Tajikistan and Uzbekistan to develop PBN-based airspace concepts. According to the association, implementation of these projects resulted in noticeable improvements in operational performance and associated fuel savings.