IATA codes are three-letter designations used to identify airports and airlines around the world. These codes are assigned by the International Air Transport Association and help simplify communication in the aviation industry. For example, the IATA code for Los Angeles International Airport is LAX, while American Airlines is represented by the code AA. These codes are essential for ticketing, baggage handling, and flight scheduling. They make it easier for travelers to recognize airports and airlines quickly. Each code is unique, ensuring that there is no confusion between different locations or carriers.