Tashkent, Uzbekistan (UzDaily.uz) — The International Air Transport Association (IATA) has urged the aviation industry to turn advances in digital airline retailing, payments and digital identity into tangible benefits for passengers and greater financial resilience for airlines.
The call was made on 28 October by Sandrine Le Borgne, IATA's acting Director General, Chief Financial Officer and Senior Vice President for Corporate Services, at the opening of the association's World Financial Symposium and World Passenger Symposium in Macau, according to IATA.
"Today, a traveler can plan a trip with AI, pay for it using a digital wallet and use biometrics to move through the airport faster. The challenge now is to realize the value these innovations can create," Le Borgne said.
She described 2026 as a year of significant volatility for the aviation industry. Conflicts have led to airspace closures and disrupted numerous routes, jet fuel prices have more than doubled year-on-year, and aerospace supply chains have yet to recover fully.
Although airlines carry more than 5 billion passengers annually, they are forecast to earn just US$4.5 per passenger in 2026, with a net profit margin of approximately 2%.
"A small increase in costs or a decline in demand can turn a profit into a loss," Le Borgne warned.
Artificial intelligence assistants and automated agents are changing how travelers search for and compare airline offers. According to IATA, these developments present both opportunities and risks for carriers.
Airlines must prepare for these changes while maintaining control over their data, commercial relationships and the quality of information provided to customers.
IATA considers the transition to Modern Airline Retailing, built around the Offers and Orders framework, essential for adapting to the changing market.
Seven airlines are already using or implementing Orders systems, while more than 20 additional carriers are expected to follow from 2027. Technology companies have invested more than US$1.7 billion in developing Offers and Orders capabilities.
"Offers and Orders are the foundation, and AI is the accelerator," Le Borgne said.
IATA also emphasized that financial considerations must be integrated into digital transformation from the outset.
Airlines spend more than US$24.5 billion annually on payment processing. While new payment methods offer customers greater choice, they also affect operating costs, cash flows and financial risks.
As airlines transition to Offers and Orders, reconciliation, settlement and revenue accounting processes must be incorporated from the beginning.
According to IATA, the objective should be to eliminate unnecessary complexity rather than simply digitize existing processes.
Biometric identification is becoming an increasingly common part of air travel. However, many biometric systems currently operate only at individual airports or within specific countries, limiting their broader potential.
IATA's proposed industry-wide solution is the One ID concept, under which passengers verify their identity once and can then be recognized throughout their journey.
Le Borgne announced that Hong Kong International Airport and Air New Zealand had become the first organizations to receive One ID certification.
Standards for secure digital passports already exist, with the International Civil Aviation Organization (ICAO) having developed specifications for digital travel credentials.
According to IATA, more than eight in ten passengers would like to use a digital passport when checking in for flights.
"Airlines cannot issue passports. Only governments can do that," Le Borgne said.
She emphasized that digital passports would transform international travel only when governments were prepared to issue and recognize them.
The two IATA symposiums are being held in North Asia for the first time.
IATA noted that Chinese airlines carried a record 770 million passengers in 2025, while the country's aviation market retains considerable growth potential.
"China's leadership is not defined by scale alone. The country is also at the forefront of digital innovation," Le Borgne said.
She called on the aviation industry to maintain consistent global standards and continue developing them as technology advances.
