Global airlines faced surging financial burdens as 2025 payment processing fees outpaced slow ticket sales growth.
The International Air Transport Association (IATA) has released new data showing that airlines globally incurred $24.5 billion in payment costs during 2025. This massive expenditure was required to process $1.05 trillion in total sales, according to information published by The Sun Nigeria.
The financial figures highlight a troubling trend for the aviation sector. Total payment costs experienced a 10.4% increase compared to 2023 figures, far exceeding the overall growth in travel sales over the exact same period, which ticked upward by only 7.7% from an earlier total of $977 billion.
According to the global organization, the average cost per transaction reached $5 per passenger. In a striking comparison, IATA forecasts that commercial airlines will make a net profit of just $4.50 per passenger in the upcoming year of 2026, underscoring the severity of the growing expense.
Breaking Down Airline Payment Processing Costs
Further financial analysis of the $24.5 billion payment total revealed that $20.7 billion, representing 84.5% of the aggregate sum, went directly toward payment fees or the direct cost of completing each individual transaction. Meanwhile, operating expenses accounted for a substantial portion.
Specifically, $2.9 billion or 11.8% of the total was related to necessary airline operating costs. This category covers various payment systems, delayed cash flow, specialized staff, and ongoing compliance requirements, while $0.9 billion was lost directly due to fraud or uncollected sales.
Industry Warnings on Low Margin Pressures
Sandrine Le Borgne, who serves as IATA Interim Director General and CFO, explained the gravity of the situation for commercial carriers. She noted that the airline industry remains hyper-competitive, capital-intensive, and famously low-margin.
Le Borgne stated that in such a challenging environment, every single cost item needs to be evaluated carefully. She emphasized that transaction costs increasing faster than industry revenues is entirely unsustainable for carriers worldwide.
Payment Methods and Passenger Preferences
When examining specific transaction methods, traditional cards accounted for the highest cost per passenger. Average payment fees for cards reached 2.53%, which is notably higher than the estimated overall average of 1.97% across all payment types.
In contrast, the lowest-cost payment options available to carriers sat at just 0.01%. Furthermore, the 2025 IATA Global Passenger Survey revealed shifting consumer habits, showing that 29% of travelers now prefer using a digital wallet, while 8% prefer a local instant payment solution.
Broader Aviation Developments and Regional Concerns
Alongside financial disclosures, the organization addressed other regional aviation matters. Nigerian Minister of Aviation Festus Keyamo recently sought a new IATA code for Osubi Airport, suggesting alternatives such as OSU, OSB, SUB, or QSB.
Additionally, IATA noted that several African countries remain absent from the 2025 world top 10 passenger markets. The association also designated Nigeria as one of the most expensive countries globally for conducting airline operations.
Frequently Asked Questions
How much did airlines pay for payment processing in 2025?
Airlines globally incurred $24.5 billion in payment costs to process $1.05 trillion in total sales during 2025, according to data from IATA.
What did Sandrine Le Borgne say about airline payment costs?
Sandrine Le Borgne, IATA Interim Director General and CFO, stated that transaction costs rising faster than industry revenues is completely unsustainable in a low-margin sector.
Which payment method has the highest cost for airlines?
Traditional cards accounted for the highest cost per transaction, with average payment fees reaching 2.53% compared to the overall average of 1.97%.
What percentage of passengers prefer digital wallets?
The 2025 IATA Global Passenger Survey revealed that 29% of passengers prefer to use a digital wallet when booking travel.
