Hydrogen's high density of available energy per unit mass is the key to identifying where it is most potentially useful.
Simply, it is by far the best of all possible aircraft fuels.
Its one major disadvantage for this, as for most uses, is its low mass density: it needs more room than diesel to store enough to be useful. The tanks need to be bigger, and either strong enough to contain high pressure, or well-enough insulated to keep it liquid.
Current aircraft store fuel in wing tanks not roomy enough for hydrogen. The most practical hydrogen-fueled aircraft would probably have a shape more like a lifting body than a submarine with skinny wings sticking out. So for best efficiency, we might need new airframes, but just using hydrogen yields major improvement. To oversimplify, the plane doesn't need to lift so much weight of fuel to cruising altitude, or carry it halfway across the world.
Tankage has improved radically in recent years with the development of aerogels, which make practical carrying liquid hydrogen that need not held be at high pressure, so can be in tanks that conform to an aerodynamically-practical shape. (Other sophisticated storage methods increase weight, so are more practical on the ground.)
Hydrogen is tricky to store for long or in large amounts, so the best way to use it is to produce it on demand where it is needed. A major airport would be a good place to produce it, as it could be piped directly into aircraft and used immediately. All the airport would need is water and power. Power can be collected by wind and solar over a wide area, delivered by transmission lines. The amount of water needed is negligible.
Producing hydrogen would also yield plenty of oxygen, which might just be vented; but by carrying liquid oxygen, aircraft could fly higher, faster, and more efficiently, or at least get to cruising altitude more quickly. As electric power continues to get cheaper, uses for it such as liquifying oxygen along with hydrogen get more attractive.
The first use will be in long-haul craft operating from a few major airports. It is possible that current large aircraft -- 747s, 777s, A380s -- could be converted, by using some of what is now cargo space for tankage, and replacing fuel pipes and pumps and, quite possibly, engines. It would be a big job, made attractive mainly by the extreme cost of qualifying new airframe designs.
The lost cargo space would be made up easily by the much larger weight capacity, as tens of tons less weight of fuel is needed. Cargo aircraft today often fly half-empty so as not to exceed their takeoff weight limit.