Analysts at UBS are expecting artificial intelligence to become a meaningful tailwind for aviation, arguing airlines are already finding ways to use the technology across pricing, operations and maintenance, even as regulators and cyber risks loom large.
The broker said AI is being deployed to improve the customer journey through targeted marketing, fare discovery and revenue management, while “agentic” tools could reshape distribution and discovery.
UBS also pointed to AI-led network design that optimises flight paths and embeds disruption management, and highlighted predictive maintenance as a potential standout, noting “an A380 can have tens of thousands of sensors per plane” that can be used to spot patterns and cut maintenance-related cancellations.
European carriers, UBS said, are not starting from scratch. Airlines have used machine learning for more than a decade to support decision-making, and UBS expects benefits to surface over the medium term.
The broker cited Lufthansa Group’s September 2025 plan to use AI and automation to cut about 4,000 finance and administration roles by 2030, alongside examples such as IAG using AI to reduce aircraft turnaround time and easyJet deploying AI in its Luton control centre to better manage flights and tailor marketing content.
The rise of agentic AI is also creating a strategic push-and-pull. UBS said travellers using AI agents could increase the potential for direct booking generation, but it noted concerns aired by Ryanair’s chief executive that dominant agents could try to monetise booking flows. UBS argues the largest airlines are best placed to capture AI upside and avoid disintermediation, supported by scale and resources as well as barriers such as fleets, brands, loyalty programmes and airport slots, and it reiterated its Buy rating on Lufthansa heading into European flag carrier results.
UBS covers the European airline sector and says AI is increasingly being applied across airline marketing, distribution, operational optimisation and predictive maintenance, with larger carriers best positioned to partner with or build advanced tools.