By Emmanuella Opara | October 31st, 2026
KEY POINTS
- Airlines spend more than $24.5bn annually processing payments, according to the International Air Transport Association.
- IATA says digital payment methods must be assessed for their impact on transaction costs, cash flow and financial risk.
- More than 20 airlines are expected to adopt the Offers and Orders framework from 2027, following seven already using or implementing it.
- Technology providers have committed more than $1.7bn to the Offers and Orders transition.
MAIN STORY
Global airlines spend more than $24.5bn annually processing payments, with the International Air Transport Association warning that the shift towards digital services must deliver measurable financial benefits alongside improved passenger experience.
IATA’s interim Director General, Chief Financial Officer and Senior Vice-President of Corporate Services, Sandrine Le Borgne, disclosed the figure at the opening of the association’s World Financial Symposium and World Passenger Symposium in Macao on Wednesday.
She said airlines needed to ensure that investments in digital payments, artificial intelligence and biometric identification reduced operating costs, simplified processes and strengthened their financial position.
The association noted that passengers can increasingly use artificial intelligence to plan trips, digital wallets to make payments and biometric systems to move through airports. However, it said the industry must focus on converting these technological developments into greater efficiency and financial resilience.
IATA also identified the growing use of AI assistants and automated agents to search for, compare and purchase travel services as an opportunity for airlines, while warning that carriers must retain control over their data, commercial relationships and the accuracy of information provided to customers.
The association said the transition to modern airline retailing through its Offers and Orders framework was central to this shift. Seven airlines are already using or implementing the system, while more than 20 others are expected to follow from 2027. Technology providers have committed more than $1.7bn to the development of Offers and Orders.
Le Borgne said the framework and artificial intelligence would need to advance together as technology increasingly changes how passengers discover, purchase and access travel services.
IATA further urged airlines to incorporate financial processes into their digital transformation from the beginning, rather than treating them as an afterthought.
It warned that although digital wallets and other payment methods offer passengers more choices, they could also affect transaction costs, cash flow and financial risks.
The association said reconciliation, settlement and revenue accounting should be integrated into the Offers and Orders transition to remove operational complexity instead of simply transferring existing processes to digital platforms.
Beyond payment systems, IATA identified biometrics and digital travel credentials as tools that could make airport procedures faster and more convenient.
However, it said the benefits remained limited because many biometric solutions operate within individual airports or countries, preventing passengers from enjoying a consistent experience across international journeys.
THE ISSUES
The annual payment processing bill of more than $24.5bn highlights the financial burden of handling transactions across the global aviation industry.
As airlines adopt digital wallets, automated booking systems and other technologies, the cost of processing payments remains an important consideration. New payment options may improve customer convenience, but IATA says their effects on cash flow, transaction costs and financial risk must also be assessed.
The proposed Offers and Orders framework is intended to simplify airline retailing by integrating the processes involved in presenting travel options, managing bookings and handling financial transactions.
However, the association’s position is that digital transformation must address existing operational challenges rather than reproduce them through new technology.
WHAT’S BEING SAID
“Today, a traveler can use AI to plan a trip. They can pay with a digital wallet and use biometrics for a more seamless journey at the airport. The challenge now is realizing the value that these innovations can create to make travel more efficient and improve financial resilience,” Sandrine Le Borgne, IATA’s interim Director General, Chief Financial Officer and Senior Vice-President of Corporate Services, said.
“Offers and Orders are the foundation; AI is the accelerator. They need to move forward together as AI increasingly reshapes how travel is discovered, sold, and serviced,” Sandrine Le Borgne, IATA’s interim Director General, Chief Financial Officer and Senior Vice-President of Corporate Services, said.
“New payment methods taking advantage of digitalisation, can increase customer choice, but also affect cost, cash flow, and risk. With airlines spending more than US$24.5bn annually to process payments, these effects must be considered together,” Sandrine Le Borgne, IATA’s interim Director General, Chief Financial Officer and Senior Vice-President of Corporate Services, said.
“Offers and Orders; Reconciliation, settlement, and revenue accounting must be built into the transformation from the start to remove complexity rather than simply digitize it,” Sandrine Le Borgne, IATA’s interim Director General, Chief Financial Officer and Senior Vice-President of Corporate Services, said.
WHAT’S NEXT
More than 20 airlines are expected to adopt the Offers and Orders framework from 2027, building on the seven already using or implementing it. The industry will also need to address the integration of payment, settlement and revenue accounting systems as it expands the use of digital services.
BOTTOM LINE
Airlines face an annual payment processing bill exceeding $24.5bn as they invest in digital technologies to improve passenger services. IATA says the success of this transition will depend on whether new systems can reduce costs, simplify operations and strengthen financial resilience, rather than simply introduce new ways of conducting existing processes.
