In the background, the phone uses its gyro sensors so it can tell what you are doing: walking, running, getting into a car/sitting down, getting out/up, ...
The unsettling part is that location logging continues to work with the phone off (saw an admittedtly obscure YouTube video on that which I can't seem to dig up again).
Like the Kindle, airplane mode also doesn't stop data from being transmitted to the overlords. It merely delays it from somewhat real-time to whenever you go online again.