How Technology Is Maximizing Airline Profits
Christiaan Hen is CEO of Assaia and an expert on the intersection of technology and aviation infrastructure.
Airlines globally are facing rising cost pressure. Inefficiencies on the ground add avoidable strain to revenue. As the aviation industry faces ongoing headwinds, it's becoming increasingly clear that the organizations with more tactical, technology-led operations will be better placed for survival.
In a market where the net profit margin has been projected to drop to 2% in 2026, financial resilience is critical. This is particularly true for low-cost and regional airlines. For these carriers, disciplined cost control and smart pricing strategies are essential to protecting performance and keeping passengers flying.
Recent fuel shortages and widespread disruption have exposed vulnerabilities across the sector. While travel demand remains strong, airlines have responded by reducing or reallocating flights and, in some cases, raising fares. Those with resilient operational and financial frameworks—supported by technology—should be better positioned to absorb shocks and limit long-term impact.
Until now, much of the industry's focus has been on efficiency in the air. We're already seeing debates over whether the Iran conflict will accelerate the retirement of older fleets in favor of new-generation aircraft that offer greater fuel efficiency and lower trip costs.
In May 2026, for example, AirAsia announced an order for 150 Airbus A220s, signaling a shift toward smaller, more efficient jets.
However, efficiency isn't limited to the sky. One of the industry's most overlooked sources of avoidable costs sits firmly on the ground, where there's an opportunity to use technology to improve processes.
Delays are a major financial burden for airlines. In aviation, profit per passenger is often measured in single-digit dollars, which means even a minor disruption can erode the profitability of a flight.
From a passenger perspective, few experiences are more frustrating than waiting in an airport with little certainty over when your flight departs. Consistent unreliability shapes passenger perception and loyalty, and it could result in airlines losing out to competition longer term.
Behind the scenes, arrivals rely on a complex chain of interconnected systems that work together to ensure an aircraft lands, parks and departs on schedule. When delays occur, disruption quickly cascades across operations. Parking slots can be missed, and taxi times between gate departure and takeoff can overrun.
Emissions are another consideration. When pilots wait in the air or on the tarmac for parking stands or departure slots, aircraft burn unnecessary fuel. As fuel supplies tighten, this can become money quite literally burned through.
This web of connected workflows can be defined as the "aircraft turnaround"—the period between arrival and next departure of an aircraft. During this short but operationally intensive window, multiple teams and systems must work in sync to complete passenger disembarkation and boarding, baggage unloading and loading, fueling, catering, cabin cleaning, maintenance checks and pushback preparation.
Every second here matters. According to Assaia’s "2025 Turnaround Report," a one-minute improvement in turnaround time on narrow-body aircraft could generate almost $15 million in additional revenue at a large airport.
Efficient turnarounds help airlines maximize aircraft utilization, reduce disruption and improve passenger satisfaction. Yet many turnaround processes still rely on manual coordination and limited real-time visibility.
AI and digitalization can offer a time-stamped overview of turnaround activity, enabling airline and airport teams to identify delays earlier and respond faster. Having a single source of truth helps improve on-time performance while lowering operational costs and reducing fuel burn from unnecessary ground delays.
We worked with Alaska Airlines as it gained real-time visibility into turnaround milestones and delay drivers, and it reported a 17% increase in flights departing on time and reduced average ground delays by 3.9 minutes. This equates to a 30% increase in profit per flight while also helping improve schedule reliability and aircraft utilization.
Similarly, we worked with John F. Kennedy International Airport to install AI turnaround management technology at Terminal 4, which helped it reduce its ground delays by an average of five minutes per flight. The improvement in gate efficiency translated to an estimated $40 million in annual savings potential.
Despite these results, adoption of AI-driven operational technologies hasn't always been straightforward. Airlines operate in highly complex environments where reliability is crucial, and any new system must integrate with existing processes without creating additional disruption. As a result, many operators can be cautious when introducing new technologies, particularly those that influence day-to-day operational decision making.
Another primary barrier is the ability to demonstrate measurable value. In an industry where resources are limited and competing investment priorities are constant, airlines need clear evidence that new technology will deliver tangible operational and financial benefits.
As more carriers and airports report improvements in areas such as delay reduction, fuel savings and aircraft utilization, confidence is growing. Additionally, advances in system integration and data security are helping reduce implementation concerns and making adoption more accessible across the industry.
As cost pressures continue to surface, using technology to improve aircraft turnaround performance is becoming one of the most effective ways to reduce waste, enhance reliability and protect profitability.
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