Airlines Spent USD 24.5bn Processing Payments in 2025, IATA Says

October 28, 2026 in Business, Travel & Tourism by Editor

Global airlines spent USD24.5 billion processing payments in 2025, with rising transaction costs adding to financial pressures on carriers, particularly in Africa, where profit margins remain thin.

 

Global airlines spent USD24.5 billion processing USD1.05 trillion in ticket and other sales in 2025, with payment costs rising faster than revenue and adding to pressure on an industry operating on thin margins, according to the International Air Transport Association (IATA).

The costs increased by 10.4pc between 2023 and 2025, compared with 7.7pc growth in travel sales, which rose from USD977 billion to USD1.05 trillion over the same period.

The findings highlight an additional financial challenge for airlines, particularly in Africa, where carriers earn an average net profit of just USD0.40 per passenger, pay 17pc above world averages for fuel. This is in addition to inflation and pressure on consumers’ ability to travel.

IATA estimates that airlines spent an average of USD5 per passenger on payment processing in 2025, against a projected global airline net profit of USD4.50 per passenger in 2026.

“The fact that payment transaction costs are increasing faster than industry revenues is unsustainable,” said Sandrine Le Borgne, IATA’s interim director general and chief financial officer, calling for greater efficiency in airline payments.

Of the USD24.5 billion spent in 2025, payment fees accounted for USD20.7 billion, or 84.5pc of the total. Airline operating costs associated with payment systems, delayed cash flow, staffing and compliance amounted to USD2.9 billion, while fraud and uncollected sales accounted for another USD900 million.

Card payments were the most expensive, attracting average fees of 2.53pc, compared with an estimated overall average of 1.97pc. The lowest-cost payment options attracted fees of about 0.01pc.

IATA is encouraging airlines to expand lower-cost payment alternatives, including digital wallets and local instant payment systems. Its 2025 Global Passenger Survey found that 29pc of passengers preferred digital wallets, while 8pc favoured local instant payment solutions.

The association’s IATA Pay platform, which enables passengers to purchase travel using local instant payment systems, has been rolled out in 34 countries across 38 payment schemes. Its Financial Gateway platform allows airlines and travel suppliers to manage payments across more than 170 countries and over 300 payment methods.

IATA is also promoting greater transparency in agency card charges and developing approaches to make corporate travel payments more efficient. Its Airline Payment Framework is intended to help carriers assess payment options against their commercial, financial and operational priorities.

Beyond reducing costs, IATA says broader payment choices could help airlines recover lost sales. Research by the association indicates that about one in five attempts to purchase additional airline services fails because the initial payment is declined and no alternative payment method is offered.

For airlines operating with limited profit margins, reducing transaction costs while making it easier for passengers to complete purchases could provide an opportunity to improve financial performance without relying solely on higher fares.