26 August 2026

IATA Calls for New Approach to Airline Payment Strategy

Why this article matters
Failed payments are a direct, measurable revenue leak, IATA's own data puts it at 17% of attempted ancillary purchases, which matters for African carriers leaning harder on ancillary revenue and digital retailing as a growth lever. A structured payment framework gives finance and commercial teams a shared basis for decisions that are often made piecemeal today.

Of Interest
- IATA's 2025 Global Passenger Survey found 17% of travellers attempting an ancillary purchase could not complete it due to a failed payment with no alternative offered.
- Airlines processed an estimated USD 977 billion in payments in 2024, at a cost of USD 22.2 billion (IATA / Edgar Dunn & Company).
- IATA has launched a new Airline Payment Framework – Management Foundation to help airlines evaluate payment options holistically.

The International Air Transport Association (IATA) has urged airlines to treat payment as a strategic priority rather than a back-office function, warning that failed or unsupported transactions are already costing carriers sales.

In an opinion piece published on IATA's website, Nick Careen, the association's Senior Vice President for Operations, Safety and Security, said a sale is not complete until payment succeeds, however well an itinerary is priced. According to IATA's 2025 Global Passenger Survey, 17% of travellers who attempted to purchase an ancillary service, such as an extra bag or seat assignment, could not complete the purchase because their initial payment attempt failed and no alternative option was offered.

Careen said the scale of the challenge is significant: IATA and Edgar Dunn & Company estimated that airlines processed approximately USD 977 billion in payments in 2024, at a cost of USD 22.2 billion. He said payment choices need to be managed deliberately, noting that individual travellers typically prioritise speed and simplicity, while corporate buyers require policy compliance, approvals, reconciliation and reporting.

Passengers are also using an increasingly diverse range of payment methods, and Careen said an airline risks losing a sale if it does not offer a traveller's preferred option. Without effective payment orchestration, matching the right method to each customer, channel and transaction, he said settlement costs and delays can increase.

To help airlines manage this complexity, IATA has developed a new Airline Payment Framework – Management Foundation, intended to help management teams evaluate payment options holistically rather than purely on cost, and to give commercial, finance, treasury, digital and technology teams a common basis for decisions.

“In the world of modern airline retailing, payment is no longer a back-office function. It is a strategic capability that influences whether a sale succeeds, how customers experience the airline, and how effectively revenue is converted into cash,” Careen wrote.

He said the framework's publication is timely as the shift towards Modern Airline Retailing accelerates, with more dynamic offers, richer service bundles and more personalised customer journeys all requiring management teams to make more deliberate decisions on payment.