In the past, payments operated like plumbing — hidden in the background and only noticed when they failed. For many merchants including airlines, they were viewed purely as a cost. Today, payments are becoming an integral part of the storefront, attracting customers, influencing their experience, and driving sales. In other words, payments are not just an expense, but also a key revenue driver to create new customer journeys.

On the cost side, payment in the airline industry has been an overlooked cost driver. Yet, it represents approximately 2.2% of airlines' revenues - amounting to $22 B globally as evidenced by a study led by Edgar, Dunn & Company for IATA.

On the revenue side, payment has been even more overlooked. Some airlines do not even maximise their market reach via local payment methods or instalment payments, or suffer from low conversions due to below-par payment processes.

With a dedicated Travel Payment practice since 2002 as part of its global payments consulting services, Edgar, Dunn & Company (EDC) has over two decades of experience working with travel-related actors, and more specifically with airlines ranging from global carriers to regional airlines as well as with airline industry stakeholders such as IATA or UATP. Based upon these consulting engagements in all regions across the globe, we have identified seven payment issues affecting the airline industry. The seven issues - shown in the table below - are key pain points or emerging needs that need to be addressed by airlines.

These seven payment issues have been organised around four themes:

A. Payment acceptance

B. Payment issuing

C. Managing (“internal organisation”)

D. Processing (“technology & processes”) payments.

This classification is particularly relevant because payments impact multiple business units within airlines. This ranges from digital / e-commerce, distribution, IT, marketing to finance and revenue accounting. While organisational structures vary across airlines, clearly defining ownership of payment responsibilities is crucial.

The identified payment issues do not exist in isolation. They emerge from a complex and continuously evolving payments landscape. Four key drivers of change shape this landscape, each introducing new opportunities (or threats!) that airlines must navigate:

These drivers create a dynamic environment where payments strategy and operations must constantly adapt. While not exhaustive and varying by countries and regions, the examples mentioned above represent key patterns observed across the industry.

The interplay between these external drivers of change and internal airline operations helps explain why payment issues persist despite efforts to address them. Understanding this context is crucial. It demonstrates that payment issues often stem from structural market changes rather than operational inefficiencies alone.

While these payment issues are common across the industry, EDC recognises that solutions must be tailored to each airline's specific context. Factors such as airline size, payment operations maturity, market competitiveness, strategic priorities (growth vs. profitability), and home market conditions all influence the optimal approach.

EDC’s Travel Payment practice will share its perspectives on each of these seven payment issues and their potential solutions in a series of articles, leveraging its independent position and end-to-end understanding of the airline payment ecosystem across regions. Unlike generic industry reports, this series is based on real-world consulting engagements, offering actionable insights tailored to the specific challenges faced by airlines.

Each article in this series will follow a structured approach: first examining the payment issue in detail, then illustrating it through real-world examples from EDC’s experience. And we will explore potential solutions.

Through this exercise, EDC’s Travel Payments practice aims to raise awareness on common payment issues in the airline industry while demonstrating the strategic importance of airline payment strategies and operations.

As an airline, are you actively monitoring and managing your payment costs? And are you investing in payments to enhance customer experience, unlock new revenue streams, and gain a competitive edge? We hope this series of articles will help airlines move payments from the boiler room in the basement to the shop window.

We value industry dialogue and shared learning. If you have insights or perspectives to contribute, feel free to reach out to us at travelpayments@edgardunn.com and connect directly with us: Louis Wapler, Pascal Burg and Greg Toussaint. We would be happy to arrange a discussion and exchange ideas.

The content of this article does not reflect the official opinion of Edgar, Dunn & Company. The information and views expressed in this publication belong solely to the author(s).