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IATA says increase in payment processing costs unsustainable
October 28th 2026
The International Air Transport Association (IATA) has published figures showing payment processing costs have grown 10% to US$24.5 billion last year, compared with 2023 figures. Read More » The increase outpaced the growth in total sales of 7.7% over the same period. "The airline industry is hyper competitive, capital intensive and famously low margin," IATA interim director general and chief financial officer, Sandrine Le Borgne, said. "In such an environment every cost item needs to be looked at carefully. The fact that payment transaction costs are increasing faster than industry revenues is unsustainable and, despite significant technological advances, highlights the critical need for greater cost efficiency." The airline lobby group is advocating for the introduction of alternative, lower-cost forms of payment for passengers, better transparency on the cost of card payments and more cost-efficient corporate travel. It has also introduced tools to assist airlines evaluate their payment options. "In addition to cost-efficiency, IATA research shows that providing passengers with alternative payment methods could also have a revenue-generating impact," Le Borgne said. "About one in five ancillary purchase attempts are not completed because the initial payment attempt was refused and no other method was offered. Enabling more payment options has the potential to help airlines realize some of this lost revenue."
