Predictive analytics 'can boost airlines' ops, profitability'

AIRLINES can leverage on predictive analytics to make better operational decisions and run more profitably as they navigate a tough operating environment, according to software firm FICO.

There is rising interest from airlines as carriers seek to protect already thin margins amid challenges such as volatile fuel prices and currency exchange rates as well as aggressively expanding budget carriers, noted Amit Parekh, director (Asia Pacific) for NYSE-listed FICO.

The International Air Transport Association recently revised its 2014 industry outlook downwards slightly, projecting an industry profit of US$18.7 billion versus US$19.7 billion previously on the back of higher oil prices. Revenues are expected to hit US$745 billion, translating to a net profit margin of just 2.5 per cent.