IATA: Airlines spent $24.5bn processing ticket payments in 2025
- Global airlines paid $24.5 billion to process $1.05 trillion in ticket sales in 2025, IATA says.
- Payment costs rose 10.4% from 2023, faster than the 7.7% growth in travel sales.
- IATA says airlines will earn about $4.50 net profit per passenger in 2026, less than the $5 payment cost.
Airlines around the world spent $24.5 billion processing payments on $1.05 trillion in ticket sales in 2025, according to new figures from the International Air Transport Association (IATA), the global body for carriers.
The payment bill grew 10.4% compared with 2023, while travel sales rose 7.7% over the same period, from $977 billion. In other words, the cost of collecting money is climbing faster than the money coming in.
IATA put the average cost of processing one transaction at $5 per passenger. It expects airlines to make a net profit of $4.50 per passenger in 2026 — meaning the industry would earn less on each traveller than it spends handling their payment.
Where the money goes
Of the $24.5 billion, $20.7 billion (84.5%) went on payment fees, the direct cost of completing each transaction. Another $2.9 billion (11.8%) covered airline operating costs such as payment systems, delayed cashflow, staff and compliance. Fraud and uncollected sales accounted for $0.9 billion (3.7%).
Cards were the most expensive way to pay, with average fees of 2.53%, above the overall average of 1.97%. The cheapest options cost as little as 0.01%.
IATA's Interim Director General and Chief Financial Officer, Sandrine Le Borgne, said the industry is "hyper competitive, capital intensive and famously low margin." She said payment costs rising faster than revenues is "unsustainable" and pointed to a need for greater cost efficiency.
IATA is pushing cheaper ways to pay. Its 2025 Global Passenger Survey found that 29% of passengers prefer a digital wallet and 8% prefer a local instant payment solution.
The association said its IATA Pay service, which lets passengers pay with local instant payment options, is now live in 34 countries with 38 payment schemes. Its IATA Financial Gateway handles payments across more than 170 countries and over 300 payment methods.
Le Borgne added that offering more payment options could also bring in revenue. IATA research shows about one in five extra purchases, such as bags or seat selection, is abandoned because the first payment attempt was refused and no other method was offered.
What happens next
IATA says it is working on guidance and alternative, lower-cost payment options for passengers. For travellers, the push towards wallets and local instant payments could mean fewer failed card payments at checkout. For airlines, it is a question of whether cheaper payment routes can protect thin margins.
