Source page: McKinsey & Company
Commentary
Soaring value from better tech
Travel & Transportation | Digital
February 7, 2024 – Some airlines use IT systems that are up to half a century old. Improving these systems could generate nearly $45 billion in value for the industry, McKinsey research shows. Partner Nina Lind and coauthors point to a combination of value streams that could increase EBITDA by 36 percent—compared with 2019 figures—with a tech transformation, including streamlining back-office processes and optimizing business expenses.
To read the article, see “How airline CIOs can turn IT from a cost center to a profit center,” December 21, 2023.
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Visual form
Proportional block chart.
Layout / body structure
The visual is arranged as a set of labeled value blocks on the left and center with a large total-value callout on the right.
What is being compared
It compares the potential increase in airline EBITDA across different value streams unlocked by tech transformation.
Measurement system
The measure is billions of dollars of EBITDA impact, with each rectangle sized and labeled by its contribution.
Visible structure inside the graphic
The chart uses rectangular blocks for optimizing IT costs, streamlining back-office processes, reducing downtime, generating revenue, and optimizing business and operating costs, with the total displayed separately.
Main takeaway from the visual
The biggest single source of value comes from optimizing business and operating costs, but the full gain is built from several distinct operational and commercial levers.
Key standout values or extremes
Optimizing business and operating costs contributes 22 billion, generating revenue 10, reducing downtime 6, optimizing IT costs 3, streamlining back-office processes 3, and the total callout is 44 billion.
Controls / sequence, when applicable
This is a static chart image with no in-chart controls to operate.
Companion media, when applicable
There is no separate companion audio or video; the chart image is the full visual on this page.