Despite spending a record $50.8 billion in technology in 2025, the global aviation industry is struggling to unlock the full value of the investment, a report by the communication solutions provider for air transport, SITA, has said.

SITA, in its report, said fragmented data systems are emerging as a critical bottleneck for the global aviation industry.

The 2025 Air Transport IT Insights report by SITA painted a picture of an industry investing aggressively in digital transformation, yet constrained by the inability to ensure seamless data flow across airlines, airports and operational partners.

According to the report, the challenge is becoming more costly amid ongoing geopolitical disruptions, particularly the ripple effects of the Middle East conflict, which continues to strain global air travel networks.

Commenting on the report, SITA’s Chief Executive Officer, David Lavorel, said that where data does not flow freely across systems and partners, investment cannot fully deliver what it was designed to unlock.

Lavorel said the constraint carries a higher cost today, but also a clear opportunity to emerge stronger.

SITA said airlines invested $36 billion (3.6 per cent of revenue) in 2025, while airports committed $14.8 billion (7.3 per cent of revenue), an increase from 6.4 per cent the previous year.

The report added that 83 per cent of airlines and 89 per cent of airports now prioritise data-driven decision-making as central to their strategy.

It, however, said that despite the rising investments, the lack of integrated data systems was limiting returns, adding that operational reliability had evolved from a service metric into a core financial driver.

The report quoted the International Air Transport Association (IATA), which said that flight delays alone account for $30 billion in lost industry revenue.

To tackle this, SITA said nearly half of airlines, about 46 per cent, are upgrading flight operations systems to unify data across aircraft, crew, passengers and flight operations.

It, however, added that 49 per cent of airlines still cite data integration and consistency as their biggest barrier.

Besides, it said Artificial Intelligence is rapidly becoming central to aviation operations, but its effectiveness is uneven.

Currently, it states 63 per cent of airlines use AI in operations control, 79 per cent plan to invest in generative AI and large language models within 12 months.

It said AI is already helping airlines manage disruption recovery, aircraft assignment and crew scheduling, but expressed worries that its full potential remained untapped.

Also, the report stated only 17 per cent of airlines use AI to monitor aircraft turnaround in real time, while airports are moving faster, with 53 per cent deploying AI for turnaround operations, an increase from 36 per cent in 2024.