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Airlines Channel Post-Pandemic Gains into Data Analytics Integration to Optimize Operations and Revenue

Record air traffic growth highlights how airlines leverage data to plan schedules, manage operations, and shape commercial strategy.

Airlines Channel Post-Pandemic Gains into Data Analytics Integration to Optimize Operations and Revenue

(Photo: SBR)

BY Donna Joseph

NEW YORK, Sept. 19, 2025 — While the global aviation sector has successfully managed to record a healthy growth in the post-pandemic air traffic and revenue generation, more focus on integration of technology is helping airlines to make operations more efficient.

As per Statista data, in 2025, the global airline industry was expected to generate a record $979 Billion in revenue, increasing from the previous year and boosting the recovery that began in 2021.

The boost in revenue for airline companies is also leading into healthy budgets earmarked for use of AI and data analytics to enhance airline operations globally.

In March this year, Air New Zealand signed a five-year partnership deal with TCS to help modernize the Kiwi carrier’s digital infrastructure and catapult its use of AI innovation.

In 2019, Australian low-cost airline Jetstar started updating its technological set-up and decided to use the Snowflake data cloud to replace an old and in-house system that was close to become redundant.

By 2023, Jetstar’s data platform had reached its use-by date, so the airline signed a contract with Snowflake.

The cloud consumption model helped this decision as the airline wasn’t sure how quickly it could move onto the new system, the airline’s head of data, analytics and automation Alex Hopkins, said at the Snowflake event in Melbourne earlier this year.

Know More About How Data Analytics is Helping Airlines 

Flight Schedules: The current aviation sector is placed in a way that data analytics is not limited to being an advantage but is a necessity.

The market conditions for airline operations have shaped up in such a way that passenger expectations, competitive pressures and market dynamics demand real-time response.

As per Precedence Research, aviation analytics market is expected to reach a valuation of $10.75 Billion by 2032, witnessing a CAGR of 11.86 percent from 2023 to 2032.

This staggering growth highlights how data is a key for the airlines to design flight schedules, manage operations and create commercial strategies. Every step in the passenger journey, from booking a ticket to completing a flight, generates information that can be used to improve both operational efficiency and revenue performance. With passenger data, airlines delve deep into travel preferences, booking patterns and loyalty behavior.

This helps carriers to predict demand in a more accurate way and give a shape to their services to different customer segments. Advanced systems not only allow schedules to be adjusted dynamically to reflect seasonal demand, special events or emerging travel trends, but also ensure that capacity is deployed where it is most profitable.

International air travel as well as in the domestic airline connectivity, data-driven scheduling is a much-needed tool for matching passenger demand with available aircraft and routes.

Ticket Pricing: According to a recent report by International Air Travel Association, or IATA, airlines are increasingly utilizing data analytics leading to improvements in all of their operations including pricing strategies.

Sophisticated revenue management systems have been deployed by the airline companies that continuously analyzes booking trends, fares of competitor and demand forecasts to set ticket prices in real time.

Often termed as dynamic pricing, this tech-driven practice helps carriers strike a balance between filling seats and maximizing yield. Apart from ticket sales, airlines rely on ancillary revenues, such as seat selection, baggage and upgrades, which are increasingly marketed through personalized offers informed by passenger data.

Flight Experience: In terms of the operational side, analytics supports decisions that directly influence the passenger experience. On-time flights, turnaround efficiency and aircraft utilization are monitored closely, with data models helping airlines minimize delays and disruptions. Real-time monitoring of flight schedules enables quicker responses to weather events, air traffic congestion or technical issues, reducing the impact on travellers. As a result, airlines are able to offer a more reliable service, which has become a critical differentiator in an industry with a cut-throat competition.

How are Airlines Leading from the Front in Data Analytics?

Delta Air Lines, the leading airline by brand value, has utilized data analytics to revamp its operational processes, which has seen highly satisfied flyers as well as efficient flight operations.

Heavy investments in predictive analytics have helped Delta Air Lines improve flight scheduling and minimize delays. Advanced revenue management systems help Singapore Airlines adjust fares dynamically across its global network, while integrating passenger feedback and booking data to refine both cabin services and route planning.

Lufthansa Group is leading the global airlines in terms of digital transformation, using analytics not only to optimize pricing and scheduling but also to enhance its commercial platforms, enabling personalized offers across multiple airlines within the group.

Aviation analytics market is globally expected to reach a valuation of $10.75 Billion by 2032, witnessing a CAGR of 11.86% from 2023 to 2032.

 

Inputs from Saqib Malik

Editing by David Ryder