The impact of sustainability-driven and artificial intelligence-based personalisation on customer loyalty at South Asia-based airlines

The global aviation industry is rapidly switching to AI-based service systems, which leads to an important research question about the effectiveness of Western digital adoption frameworks in explaining the sustainable behaviour of distressed state-owned enterprises (SOEs) that operate in developing countries. Therefore, the aim of this study is to investigate the impact of sustainability-driven and AI-based personalisation on passenger loyalty at Pakistan International Airlines (PIA) while examining the role of digital trust and the impact of geocultural privacy issues on the relationship between them. The research is based on a survey consisting of a sample of 128 Pakistan International Airlines (PIA) passengers. The data analysis was conducted using Pearson bivariate correlation and hierarchical multiple regression methods in SPSS software. The findings indicate that passengers who perceive AI technology as beneficial experience higher levels of satisfaction with their travel experience. Digital trust functions as the mandatory partial mediator which transforms functional digital utility into repeat purchase intention, whereas higher privacy concerns produce a statistically significant negative moderating effect that establishes a geocultural Privacy Paradox specific to the South Asian market context. Conclusively, the study results support a combined TAM–Brand Trust theoretical model, which provides strategic recommendations for implementing AI-driven and sustainability-influenced personalisation methods. In terms of implications, the findings may influence policymakers in formulating policies aligned with the Sustainable Development Goals of 9, 11 and 12. The findings may act as a guide for other businesses in the transport industry to better navigate challenging and hostile environments.