MONTREAL – Airlines worldwide spent $24.5 billion processing $1.05 trillion in sales in 2025, with payment costs rising faster than sales, according to the International Air Transport Association.
Total payment costs increased 10.4% from 2023, compared with a 7.7% rise in sales over the same period, the organization that represents more than 370 airlines said in a report released Tuesday.
The average payment cost was $5 per passenger, exceeding IATA’s forecast net profit of $4.50 per passenger for 2026, it said.
The report was released ahead of Wednesday’s opening of IATA’s World Financial Symposium and World Passenger Symposium in Macau, China.
Payment fees accounted for $20.7 billion, or 84.5%, of the total cost. Airline operating expenses, including payment systems, delayed cash flow, staffing and compliance, accounted for $2.9 billion, while fraud and uncollected sales resulted in a further $900 million in losses.
Card payments were the most expensive, with average fees of 2.53%, compared with an estimated overall average of 1.97%. The lowest-cost payment options carried fees of 0.01%, IATA said.
The association is urging airlines to offer more lower-cost payment methods, including digital wallets and local instant payment systems.
Its 2025 Global Passenger Survey found that 29% of passengers preferred digital wallets, while 8% favored local instant payment solutions.
IATA also said about one in five attempts to purchase additional services, such as baggage or seat selection, failed because an initial payment was refused and no alternative payment method was offered.
Sandrine Le Borgne, IATA’s interim director general and chief financial officer, said the increase in payment costs outpaced industry revenue growth and highlighted the need for greater cost efficiency.
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