The Airline Tech Podcast: The growing role of AI in airline customer service

Disrupted flights result in costs of over €100 million per year for large airlines like easyJet or Wizz Air. They also drive high volumes of claims that must be managed by airline customer service teams.

In this episode, Garth Lund speaks with Xavier Orr, Chief Operating Officer and Aviation Practice Lead at Avocado 55, about how AI is changing airline customer service and how AirCS automates the claims process.

Why disruption claims matter

According to Avocado 55, a delayed flight on a typical narrowbody at a 90% load factor can cost around €90,000 in compensation in the UK, plus around €1,500 to handle the claims. Claim rates continue to rise and this has increased not only the magnitude of compensation expenses but also the pressure on customer service teams to handle that extra volume.

What you'll hear

• How a single delayed flight can cost around €90,000 in compensation, plus the cost of handling each claim
• Why templated rejection emails drive complaints, and what changes when the explanation includes flight data
• How AI-based claims handling differs from a traditional decision engine
• How the partnership between Avocado 55, Clyde & Co and Loculus works
• Why Avocado 55 expects human agents to stay in airline customer service
• How the role of claims farms is changing

What it means for airlines

Disruption costs have become increasingly material for airlines in recent years, especially in Europe and the UK.

For easyJet, compensation of just over €100 million works out at roughly €1 per passenger, or around 2% of ex-fuel cost per passenger.

Automating claim handling helps airlines reduce costs, avoid paying out illegitimate claims, and speed up handling times to improve the customer experience.

This kind of high-volume, repeatable task is exactly where AI can excel, freeing up human agents to manage more sensitive customer cases.

Check out AirCS for yourself.

Also available on Apple Podcasts and Spotify.

Disclosure: At the time of recording, the host, Garth Lund, holds a personal shareholding in Wizz Air, mentioned in this episode. This episode does not address the company's share price or investment case.