SITA CEO Barbara Dalibard believes technology can be used to dramatically cut disruption, which adds $25 billion a year to industry costs—a figure that is roughly equal to the industry’s annual profit margin.

Further savings could also come by addressing $2.3 billion in mishandled luggage costs.

“If you decrease disruption and mishandled baggage, you can double your margin,” Dalibard said, speaking at the SITA Euro Air Transport IT Summit in Budapest.

She said this could be achieved by tapping technologies to streamline processes, leading to improved on-time performance.

While she conceded that it may not be possible to eliminate all possible causes of disruption, she added: “You could easily divide the cost of mishandled bags in two, if you tracked bags every step of the way.”

Victoria Moores victoria.moores@informa.com