A majority of airline and airport executives surveyed said their organizations are experiencing more disruptions than in 2019, with industry leaders expecting disruptions to remain elevated.
That’s the key finding of a new study from travel technology company Amadeus. The report, “Better Together: Rethinking How to Manage Disruption in Aviation,” was done in conjunction with senior airline and airport executives to understand the scale of the challenge and how they plan to reduce the impact of disruption for passengers.
Flight disruptions are defined as occasions when a scheduled flight is canceled for two hours or more within 48 hours of the original scheduled departure time. According to industry data provider Infare, these disruptions remain 300% above historical norms as the aviation industry continues to grapple with a skills shortage and the rapid return of demand for air travel across every region of the world.
“In 2022 airlines struggled with supply and staffing issues, but during 2023 airlines and their partners are simply facing an unprecedented return of demand,” said Harry Grewal, director of infrastructure and customer experience at the International Air Transport Association (IATA). “Of course, that’s very welcome, but it brings its own operational challenges.”
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Taking action to mitigate the impact has become a top priority for the sector, officials said. Only about one-third believed disruptions were on the decline from 2019, while 52% believed they were greater. Against this backdrop, a push for more innovation appears to be accelerating at some airports as the sector seeks ways to reduce friction and enhance the experience for travelers.
“Disruption is a hugely complex problem that requires airlines, airports, ground handlers and others to work collaboratively,” said Holger Mattig, senior vice president for product management of airport and airline operations at Amadeus.
“Unfortunately, we still have too many information silos in aviation, which impacts the overall response and, ultimately, passengers. However, I do sense a real determination across the industry to put historic commercial tensions to one side and deliver a better, more joined-up and traveler-centric approach to disruption that’s empowered by shared technology. At Amadeus, we are happy to contribute to this stronger ecosystem collaboration across people and technology, allowing for more efficient airport operations and a smoother end-to-end passenger experience.”
The report draws on a series of in-depth interviews with 50 senior leaders from airports across the world as well as a survey of more than 100 senior airline leaders. Respondents were drawn from the United Kingdom, France, Germany, United Arab Emirates, United States, Mexico, Brazil, India, China and Korea.
Other key insights from the study include:
- 64% of airlines are investing in new technology to improve their response to disruption.
- The top reason for airline investment was to “improve our public image” at 70%, well ahead of “to reduce costs” at 34%.
- Airlines point to the need for “closer integration of our own operational systems to gain a holistic view disruption” as the top capability to improve their response.
Southwest Airlines made headlines in late 2022 when it had to cancel thousands of flights, which many blamed on challenges caused by the carrier’s point-to-point business model and an antiquated crew scheduling system. In March of last yera the company shared a three-part action plan to improve its operations, and last month when reporting its Q4 and full-year 2023 financial results said it expects to spend approximately $1.7 billion in 2024 on technology investments, upgrades, and system maintenance.
Airport leaders also told Amadeus they see a need for technology investments. Among their comments:
- Airport leaders reported a “lack of common technology that brings stakeholders together” as their top challenge when responding to disruption (50%).
- A third of airport leaders pointed to “last minute provision of information from airlines” as a persistent challenge.
- All airports surveyed confirmed they are planning to invest in technology at their operational control centers to better manage disruption. A quarter plan to do so in the next 12 months.
The nature of those investments vary, and they aren’t limited only to airports.
One high-ticket example: The acquisition last week by Amadeus of biometric technology specialist Vision-Box for €320 million. Vision-Box provides solutions for airlines, airports, cruise lines and seaports, including developing automated bag drop services in partnership with AirAsia and launching with Lufthansa and Amadeus biometric boarding at Los Angeles International Airport.
Disruption is a hugely complex problem that requires airlines, airports, ground handlers and others to work collaboratively.
Holger Mattig – Amadeus
In making the acquisition to further its “ambition to connect the travel industry through a seamless ecosystem approach,” Amadeus pointed to research from Biometrics Research Group that showed the global biometrics sector is estimated to grow to $86 billion by 2028 from $48 billion last year.
The use of biometrics across every passenger touchpoint is accelerating rapidly. The Amadeus report found around 40% of airports have implemented biometrics at some service points, with a further 50% planning to roll it out in the near future, particularly at bag drop.
Investment in biometrics is being driven by a desire to “improve the passenger experience” at 56% of airports, to “improve security”’ for the same number and to comply with regulations for 38% of respondents. Airports also pointed to cost reduction, attracting airline partners and the ability to process more passengers as drivers for biometrics at the airport.
Last fall Singapore’s Changi Airport, awarded the World’s Best Airport for 2023 at the Skytrax World Airport Awards, unveiled its refurbished and expanded Terminal 2 following three and a half years of work. The project included use of a “Fast and Seamless Travel” (FAST) zone along with a doubling of automated check-in kiosks and bag drop machines. The airport has plans to go passport-free in 2024 by using biometrics at bag drop, immigration and boarding.
Passports also are not required at Dubai International Airport Terminal 3, where smart gates equipped with biometrics and facial recognition enable seamless travel for eligible passengers, including UAE residents and nationals, Gulf Cooperation Council (GCC) region nationals, and visa-on-arrival visitors with biometric passports.
At Harry Reid International Airport in Las Vegas, TSA PreCheck travelers will be able to scan identification and carry-on bags in a new self-service screening system from the U.S. Transportation Security Administration that resembles a grocery store self-checkout. The pilot program is part of the rollout of the agency’s “Screening at Speed Program,” which seeks to increase screening efficiency and improve the passenger experience.
In October, the Frankfurt Airport in Germany became the first European airport to offer face biometrics as identification from check-in to boarding. Using SITA’s Smart Path biometric solution, passengers can register online in advance or at a check-in kiosk with their biometric-enabled passports.
In November, Honolulu’s Daniel K. Inouye International Airport adopted SITA’s Smart Path, allowing international passengers to step up to a camera at the boarding gate to verify their identity and board in seconds. The biometric touchpoints have already been deployed at airports in Miami, Orlando and San Francisco with a 99.5% match rate in confirming identities by comparing a live photo to images the travelers provide the government, SITA said.
