Lufthansa will ringfence €500 million in funds to push what it calls a major investment in "digitalisation and innovation".
The Germany-based carrier, which also includes Swiss Airlines and Brussels Airlines in the wider group, says the action is part of a strategy to reposition and refocus the network.
Speaking during its 2016 review in Munich, CEO and chairman of Lufthansa Group, Carsten Spohr, says the carrier hopes the spending will "unlock more revenues" across its portfolio of airline brands.
At the heart of the investment will the introduction of "greater personalisation" of products and services, Spohr claims.
In particular, the carrier wants to work on systems and processes match the customers who are "seeking a personalised travel experience", offering each with the "right product at the right time", the report 2016 report says.
Connected to this drive to connect directly to passenger's, Lufthansa's controversial decision in the summer of 2015 to introduce a €16 fee to every booking made by Global Distribution Systems is "starting to pay off", it claims.
The share of direct bookings, particularly in home markets, has "continually increased", the airline says.
"Negotiations on direct bookings with customers, tour operators, travel agencies and technology providers are delivering a steady stream of successes.
"Demand has also increased for complementary services such as upgrades, baggage services, hotels, rental cars and insurance.
"The new distribution strategy makes it possible to provide attractive and varied offers that meet the ever more individual and dynamic requirements of sales partners and corporate customers, while also enabling improved yield management."