Aviation’s digital evolution: market dynamics and emerging skills
- Dee Angelini
- Jun 5
- 6 min read
Updated: Jun 6
The role of technology in aviation has undergone significant shifts over the last 60 years, from the digitisation of paper tickets to personalised omnichannel experiences heavily reliant on customer data.
In the first of a series of articles by Dee Angelini, our Digital & Technology Senior Research Consultant, he considers past and present developments in aviation's digital evolution, taking in market patterns, talent acquisition hurdles, and the skills sought in future-proof digital and technology leaders.
In the aviation industry, digital transformation has advanced considerably in recent years. The influence of Big Tech – think of how Uber, Spotify, Apple, and Amazon shape our expectations and habits – alongside the exponential growth of AI, have been key influences as many airlines continue to boost their digital ambitions.
Delivering seamless, personalised omnichannel experiences has become the baseline for airlines, in the same way as cloud transformation and e-commerce previously. But whether something is actually future proof depends on strategic preparation for entirely new engagement paradigms, as well as on recognising that global habits can now transform with unprecedented speed.
I wanted to explore digital evolution, pressing issues around talent acquisition, and the leadership attributes needed to convert digital potential into success – with a particular focus on how these topics translate from an executive search point of view. First up in this series, I will assess the current state of play in the market and offer an overview of the foundational shifts that have brought us here, as well as summarise the key roles that have evolved in each wave of the digital evolution.
So, without further ado – let’s get into our first piece!
Foundational shifts (mid-1960s to early 2000s)
Air Canada (previously known as Trans-Canada) and American Airlines were among the first to launch computerised reservation systems (in 1962 and 1964, respectively). This spearheaded the first wave of digitisation, which later evolved into the global distribution systems (GDSs) that became indispensable to travel agencies from the late 1970s and 1980s. These early developments fundamentally changed how air travel was sold and managed, paving the way for the shift to online booking that would start in earnest in the late twentieth century.
Beginning in the mid-1990s with the dawn of e-commerce, Alaska Airlines was the first US airline to sell tickets online, in 1995. Virgin Atlantic, Lufthansa, and British Airways (the first European airlines to launch their websites, between 1997 and 1999) were early pioneers in demonstrating the potential to revolutionise direct sales aligned with customer interaction. This initial wave saw the digitisation of core elements like ticketing such that e-tickets were widely in use by the late 2000s and mandated by IATA in 2008, representing the first step into airline e-commerce and broader digitalisation.
During this era, technology leadership was primarily operational, with roles such as Director of Information Systems or IT manager focused on maintaining the integrity and performance of large-scale, centralised systems. Leaders in such positions typically possessed deep technical expertise in mainframe environments, COBOL programming, database management, and proprietary network infrastructure. Their primary responsibility was to ensure system reliability, efficient transaction processing, and minimal downtime. Stakeholder engagement was largely internal: i.e., supporting airline operations, finance, and sales, particularly through travel agent channels, rather than direct interaction with passengers.
At the executive level, IT was viewed as a back-office utility or cost centre (order taker), with expectations centred on operational stability and cost control. The CIO role, where it existed, was typically technical rather than strategic, as IT had for a long time been seen as exclusively a cost centre.
Flying up to the cloud: strategic CIOs, Chief Digital Officers (late 2000s-present)
The migration to cloud computing, which gained significant momentum from the mid-2010s onwards, emerged as a pivotal enabler for more profound digital transformation in aviation. While early cloud adoption was often gradual and driven by the need for scalable, cost-efficient ways to manage vast amounts of data from booking systems to operational platforms, it has since matured significantly.
Today, cloud is not merely an infrastructure upgrade: it’s an essential foundation for operational agility, sophisticated data analytics, and the future widespread deployment of AI. The aviation industry’s pragmatic approach to digital transformation underscores the sector’s enduring focus on demonstrable ROI and solutions to pressing, real-world challenges.
Complementing the shift to the cloud was the rise of mobile and the strategic use of customer data. Mobile applications, once limited to basic booking functions, have evolved into essential platforms for airlines by offering passengers greater control and convenience via real-time updates, digital boarding passes, baggage tracking, ancillary purchases, and more. By 2024, 90% of airlines had adopted data platforms, and 50% of them had invested in generative AI, LLMs, and business intelligence, reflecting their growing role in enhancing customer experience and operational efficiency.
Although many carriers have begun leveraging vast datasets – from loyalty programmes to real-time control centres – the flow from data collection through pipelining and actual data use still presents varying levels of development and integration. To enable hyper-personalised offers, dynamic pricing, and more targeted engagement strategies, advanced data architecture is required, which brings us back to the important role of cloud migration.
The industry shift from transactional service models to predictive, relationship-driven experiences is a constant evolution and upgrade of computing power, complex architectures and the development of new skills within IT and digital teams. These developments underscore a broader evolution: from digitising operations to intelligently orchestrating them around the needs and behaviours of the modern traveller.
Digital talent in the current aviation market
As digital evolution reaches new heights, the profile of technology leadership has evolved dramatically. Today’s digital leaders – whether strategic CIOs, CTOs, or Chief Digital Officers – are expected to be business strategists as much as tech experts. Their expertise typically spans cloud ecosystems, AI and machine learning, API-driven architectures, enterprise agility, and cybersecurity. However, the emphasis has shifted from hands-on technical execution to orchestrating complex, cross-functional ecosystems that deliver measurable business value.
These leaders engage closely with the full C-suite and boards to drive enterprise-wide change while forging strategic partnerships with technology providers. Expectations are high: namely, to deliver innovation at speed, ensure resilience, and create engaging customer experiences. Leaders need to demonstrate vision and collaborative styles grounded in data and customer insight, and focus on fostering agile cultures that embrace experimentation. Success in this era demands not only technical fluency but also the ability to inspire, influence, and lead through constant change.
The aviation environment constantly faces ambiguity. Those can be clearly seen in situations from global pandemics and geopolitical conflicts to the experimentation and adoption of new technologies and sustainability transitions. The digital executive who succeeds in this environment is comfortable with making decisions with limited information and influencing board decisions by translating complex technical concepts into actionable plans. Take what happened at the CrowdStrike incident last year; some of the least impacted airlines proved the importance of fast-acting IT leadership and of robust contingency plans as part of their digital strategy.
What comes next?
The digital future of aviation will be shaped not by isolated breakthroughs but by the convergence of multiple accelerating technologies. Let’s use the combination of exponential AI development with advanced robotics and quantum computing in a hyper-fast connectivity environment (6G and satellite networks) as an example. It might completely redefine efficiency and passenger experience. In fact, digital twins, already utilised by airports, airlines, and aerospace manufacturers as sophisticated virtual models of assets and systems, can serve as a training environment for AI algorithms to predict incidents and even develop future autonomous flight and robotic navigation capabilities.
To lead in today’s rapidly evolving landscape, digital and technology executives must move beyond the traditional, siloed leadership model. Previous generations of leaders often specialised in optimising established technologies, such as cloud, e-commerce, or enterprise systems. By contrast, tomorrow’s technology leaders must act as strategic co-creators, not just enablers: owning the infrastructure, data, tools, and policies that underpin digital evolution. As airlines place technology at the core of their business strategy, tech leaders become essential partners to the CEO, bridging vision and execution, and enabling experimentation and scale. This adds to the responsibilities of the future CIO, CTO or CDO for ensuring ethical governance across platforms and systems.
