Airlines Spend $24.5 Billion on Payment Processing
Global carriers' payment costs rose faster than sales between 2023 and 2025, according to industry figures.
Updated on Nov. 10, 2026 in Air Travel
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Global airlines spent US$24.5 billion on payment processing in 2025, a 10.4% increase over 2023 that outpaced 7.7% growth in sales. Airline sales totalled US$1.05 trillion in 2025.
Why it matters
Payment processing fees, which account for most of these costs, are a growing expense for carriers operating on thin margins. Airlines are looking to expand alternative payment methods and improve the efficiency of payment operations.
Payment processing fees totalled US$20.7 billion in 2025, or 84.5% of total payment costs, while bank card payments averaged 2.53% in fees per transaction. Losses from fraud and unpaid sales reached US$900 million, or 3.7% of costs.
The players
IATA
The International Air Transport Association is the global trade body representing the world's airlines, and it publishes industry financial forecasts and runs the IATA Pay system.
The details
Airlines pay fees to payment processors on each transaction, and the average cost of processing a transaction reached US$5 per passenger. IATA Pay allows passengers to pay for travel through local instant payment systems, offering one possible alternative to card fees.
Timeline
Airline sales grew 7.7% between 2023 and 2025, the baseline period for the cost comparison.
Airlines spent US$24.5 billion on payment processing in 2025.
IATA forecasts average net profits of US$4.50 per passenger in 2026.
Travel Outlook
Airlines' rising payment costs are outpacing sales growth, with processing fees now consuming a growing share of revenue. Alternative routes such as IATA Pay, which lets passengers pay through local instant payment systems, are being positioned as a way to reduce that burden.
Passengers may see changes in how airlines accept payment as carriers seek to reduce processing costs. Alternative payment options such as IATA Pay may become more common for booking travel.
The takeaway
Rising payment processing costs are an increasingly visible pressure on airline economics, and the shift toward alternative payment methods may change how travelers book and pay for flights.
Further reading
For more on how airlines are changing the way passengers pay, explore Air Travel coverage.
Source note: This article includes information reported by UzDaily.
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