Airplane mode disables all wireless transmissions: mobile data, calls, SMS, Wi-Fi, and Bluetooth. Under aviation law, devices must not transmit radio signals during takeoff and landing to prevent potential interference with aircraft instruments, so passengers switch to airplane mode or power off.
After enabling airplane mode, you can individually re-enable Wi-Fi and Bluetooth for in-flight Wi-Fi or wireless earphones.
Beyond planes, it's useful for focusing on study or work (blocks all calls and notifications), and for saving battery (wireless transmission is a major power drain). Charging is faster with airplane mode on.
Important: emergency calls (110/119) cannot be made in airplane mode. Disable it before calling for help.