Industry 4.0 is a recent revolution that influences many aspects of society today. The sustainable and gradual development of technology stimulated the spread of the fourth industrial revolution into different industries, ranging from low-tech manufacturing to highly advanced service sectors. The aviation industry is one of the largest and the most strategic industries due to economic, political, and military considerations. The growth of this industry is essential, and Industry 4.0 supports its this through the use of effective technological aids, such as the Internet of Things (IoT) and Cyber-Physical Systems (CPS). These are considered prime examples of Industry 4.0 technologies. IoT connects the physical objects in an environment to collect extensive data that can be analyzed for meticulous planning. In the aviation industry, all this precise information is used to offer customers more qualified service, produce better weather forecasts, improve real-time flight tracking service, and provide excellent aids that help flight crews make safe decisions. In addition, CPS integrates hardware and software systems to conduct operations safer, more economical, and more effectively. In the aviation industry, CPS is mainly employed to improve the autonomy of the aircraft and the air traffic management systems. Autonomous ability leads to intelligent and sustainable systems that can reduce air traffic congestion, lighten the heavy workload of air traffic controllers and pilots, and minimize the likelihood of accidents. The future generation of air traffic management systems will have a high level of autonomy and be capable of making decisions closer to those of humans. To that end, this chapter introduces IoT and CPS technologies and their applications in the aviation industry. This chapter explores the application of IoT and CPS technologies in the aviation industry, focusing on the smart baggage handling system. It provides a brief overview of Industry 4.0, IoT, and CPS. Then, it presents a case study of how an airline company implemented an IoT-based baggage handling system that reduced mishandled bags, improved customer satisfaction, and increased operational efficiency. The chapter also discusses the implications of IoT and CPS for aviation operations, safety, and overall efficiency and suggests future directions and considerations for further research and development. The chapter aims to provide a comprehensive understanding of the present and future of Industry 4.0 in the aviation sector. <!----> <!----> <!----> <!---->