Speaking on an AI panel at the Israel IT Conference at Expo Tel Aviv, Arkia CEO Oz Berlowitz said aviation remains one of the least technologically advanced industries. Airliners today fly at roughly the same speed, altitude and fuel burn as they did in the late 1950s.

Pilotless flights? Not yet

Berlowitz said a pilotless plane may become technically possible, but he doubts passengers would be willing to board one.

Where AI is making a difference

According to Berlowitz, the biggest changes from AI will come in customer service and communications. Arkia has already put the technology to work and cut its workforce by about 20% without hurting service levels. Still, he warned that AI will not bring ticket prices down any time soon, because fuel remains one of the largest factors in the cost of a flight.

Arkia's operating challenges

About half of Arkia's fleet is wet-leased, and the airline vets the foreign crews it works with, who stay in Israel for month-long rotations. Arkia holds approved slots for Tokyo, but East Asian authorities have been reluctant to accept an Israeli carrier operating a Portuguese-registered leased aircraft, so the route is on hold for now. In the meantime, the airline has doubled its flights to Hanoi, Vietnam.

What it means for shippers

Fuel-driven pricing and limited capacity on some long-haul routes from Israel are likely to continue. Shippers using belly cargo on passenger flights should check routings and rates in advance, especially to the Far East.