Some airlines use IT systems that are up to half a century old. Improving these systems could generate nearly $45 billion in value for the industry, McKinsey research shows. Partner Nina Lind and coauthors point to a combination of value streams that could increase EBITDA by 36 percent—compared with 2019 figures—with a tech transformation, including streamlining back-office processes and optimizing business expenses.
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A square area pie chart shows 100% of the almost $45 billion potential increase in total EBITDA impact by value stream achievable by tech transformation in the airline industry by 2030. The data assume 2019 levels of revenue and profitability, given the uncertain nature of forecasts and recovery, and wholesale tech transformation over a more than five-year horizon. Most of the gains are $22 billion from optimizing business and operating costs. The rest are $10 billion from generating revenue, $6 billion from reducing downtime, $3 billion from streamlining back-office processes, and $3 billion from optimizing IT costs.
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To read the article, see “How airline CIOs can turn IT from a cost center to a profit center,” December 21, 2023.