The Role of Data Analytics in Modern Airlines: Key Uses and Benefits

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Data analytics has come a long way—from manual calculations on paper to advanced machine learning and real-time insights. In the aviation industry, where millions of data points are generated daily, there’s simply not enough paper in the world to track every flight schedule, maintenance record, and customer preference manually. Modern tools now make it possible to transform this overwhelming stream of information into actionable insights, helping airlines optimize operations, improve safety, and deliver better passenger experiences.

What is data analytics?

Data analytics is the process of exploring raw data to uncover trends, correlations, and insights to solve problems or answer critical questions. This process typically involves five key steps:

  1. Collect
  2. Transform
  3. Analyze
  4. Display
  5. Decide

Organizations often leverage four types of analytics during this process:

  • Descriptive: Provides insights into what has happened or is happening
  • Diagnostic: Explains why something happened
  • Predictive: Allows us to know what could happen in the future
  • Prescriptive: Guides us in decision making

The impact of data analytics on airlines

The aviation industry generates a staggering amount of data every day, from flight and maintenance records to passenger preferences. Back in 2015, a single Boeing 737 produced an average of 20 terabytes of engine data per hour. Today, with advancements in IoT sensor technology and real-time data streaming, that figure could be nearly double. Data analytics has become the aviation industry’s secret weapon, transforming this information into actional insights. Here’s a brief overview of how airlines are using data to improve safety, efficiency, and the overall passenger experience:

Optimizing safety measures

Flying is one of the safest ways to travel, thanks in large part to data analytics. Airlines go beyond standard maintenance checks to ensure safety by relying on advanced tools:

  • Predictive maintenance: By analyzing historical data and real-time sensor inputs, airlines can predict when parts might fail and address issues before they become problems. This minimizes delays, cancellations, and potential accidents.
  • Fuel monitoring: Data analytics helps airlines track fuel usage patterns and optimize flight operations, improving sustainability and reducing costs.

Improving efficiency and margins

For airlines, delays and inefficiencies are more than just annoyances; they’re expensive. Just one hour of aircraft downtime can equal up to $15,000 in lost revenue. That’s why transitioning from reactive to proactive planning is essential. Here’s where data analytics steps in:

  • Route optimization: Airlines calculate the most efficient routes using real-time and historical data to avoid delays, reduce fuel consumption, and optimize airport fees.
  • Crew management: Airlines use analytics to prevent overstaffing or understaffing, effectively manage crew schedules, and comply with regulations.
  • Demand forecasting: By analyzing seasonal trends, economic conditions, and historical patterns, airlines can better predict demand and schedule flights accordingly, reducing costs and meeting passenger expectations.

Improving the passenger experience

We’ve all had frustrating travel moments, but behind the scenes, airlines are using data to make your journey as smooth as possible:

  • Passenger flow optimization: Analytics helps reduce bottlenecks at check-in, security, and boarding, ensuring a faster and less stressful airport experience.
  • Dynamic pricing: Airlines use machine learning models to predict demand, ensuring ticket prices balance filling seats with maximizing revenue. These algorithms can adjust prices in real time, reacting to booking trends, special events, or market shifts.
  • Smart seat allocation: When you don’t choose your seat, airlines use algorithms to place passengers strategically—keeping families together, for instance—to improve the onboard experience.

Ensuring excellence in data-driven operations

Excellence in aviation requires both top-notch operations and a sharp focus on customer experiences, from airport interactions to in-flight services. To maximize the benefits of data analytics, airlines must adopt structured frameworks that:

  • Align data initiatives with corporate strategies and metrics.
  • Focus on business processes or use cases with measurable impacts.
  • Prioritize quick wins while planning for long-term value.
  • Promote data literacy and change management among stakeholders.

See how Softtek helps airlines and travel companies unlock data-driven potential

With over 40 years of IT service experience, Softtek has helped airlines and travel companies tackle complex challenges through data analytics:

  • For one of America’s largest domestic airlines, we transformed IT operations with a managed services model, using data-driven automation and self-healing strategies to ensure reliability in flight-critical applications. Read the full case study.
  • Softtek worked with a world-renowned travel group to build a scalable platform on AWS, harnessing data to deliver seamless booking, personalized experiences, and 80% cost savings. Watch the video case study.
  • For a leading Canadian airline, Softtek’s 24/7 digital security monitoring reduced cost per threat by 20%, safeguarding operations while enhancing cost efficiency. Read the full case study.

Visit our airlines page to connect with the Softtek team and explore how to improve safety, optimize efficiency, and enhance the passenger experience.