IATA Reports Global Airline Payment Costs Hit $24.5 Billion

The International Air Transport Association reported that global airlines spent $24.5 billion on payment processing costs in 2025 to manage $1.05 trillion in sales. These costs increased by 10.4% since 2023, outpacing the 7.7% growth in travel sales during the same period.

Payment fees accounted for $20.7 billion of the total, with operating costs adding $2.9 billion and fraud or uncollected sales contributing $0.9 billion. Credit cards remained the most expensive payment method, with average fees of 2.53%. The average payment cost per passenger reached $5, a figure that exceeds the industry's forecasted net profit of $4.50 per passenger for 2026.

Interim Director General and CFO Sandrine Le Borgne described the trend as unsustainable, noting that payment transaction costs are increasing faster than industry revenues. To address these margins, IATA is promoting alternative payment methods through IATA Pay and the IATA Financial Gateway, while developing a new framework for corporate travel payments and improving agency card transparency via the Billing & Settlement Plan.