Airline Leaders Tackle AI, Data Fragmentation, and Consumer Trends

Airline executives at Phocuswright Europe 2025 discussed the growing role of artificial intelligence (AI) in aviation, focusing on its potential to reshape customer service, data integration, and retail transformation. While AI is already used in dynamic pricing and predictive maintenance, new frontiers are emerging.

Olaf Backofen, head of global retail partnerships at Lufthansa Group, highlighted a pilot project between SWISS and AI assistant Swifty that explored conversational booking. While traditional booking methods remain dominant, early results show younger travelers, especially Gen Z, are more open to using conversational AI for flight bookings.

Filip Filipov, chief operating officer at AI firm OAG, emphasized the importance of collaboration and data sharing in unlocking AI’s potential. “For the first time, airlines and industry players are opening up to connect data points across the traveler journey,” he said, noting that overcoming data silos is key to future innovation.

Both executives acknowledged ongoing challenges related to fragmented data and outdated legacy systems that hinder the effective deployment of AI. Backofen noted that a fully integrated retail system—where tickets, ancillaries, and services are bundled under a single booking reference—is still four to five years away.

The session also touched on the growing need for airlines to engage travelers through modern retail channels like social media. Shifts in consumer behavior and evolving tech expectations are pushing airlines to rethink how they personalize experiences and deliver seamless interactions.

The conversation underscored that AI could disrupt aviation—but only if the industry can solve its foundational data issues.

Tags: phocuswire

Airline Leaders Tackle AI, Data Fragmentation, and Consumer Trends

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