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•Says African travellers lag in biometric adoption
•Data fears, visa barriers slow uptake
By Chinelo Obogo
The International Air Transport Association (IATA) has released new data demonstrating the rising cost burden of payment processing which shows that airlines globally incurred $24.5 billion in payment costs to process $1.05 trillion in sales in 2025, a 10.4% increase in total costs versus 2023. That far exceeds the overall growth in travel sales over the same period, which was up 7.7% from $977 billion in 2023.
The average cost per transaction was $5 per passenger. In comparison, IATA forecasts that airlines will make a net profit of $4.50 per passenger in 2026.
IATA’s Interim Director General and Chief Financial Officer, Sandrine Le Borgne said: “The airline industry is hyper competitive, capital intensive and famously low margin. In such an environment every cost item needs to be looked at carefully. The fact that payment transaction costs are increasing faster than industry revenues is unsustainable and, despite significant technological advances, highlights the critical need for greater cost efficiency,”
Further analysis of the $24.5 billion cost of payments in 2025 revealed that $20.7 billion (84.5% of the total) was related to payment fees or the direct cost of completing each transaction while $2.9 billion (11.8% of the total) was related to airline operating costs, including various payment systems, delayed cashflow, staff, and compliance and $0.9 billion (3.7% of the total) was lost due to fraud or uncollected sales.
Cards accounted for the highest cost per transaction with average payment fees at 2.53%, higher than the estimated overall average of 1.97%. The lowest-cost payment options were at 0.01%.
The 2025 IATA Global Passenger Survey revealed that 29% of passengers prefer to use a digital wallet and 8% prefer a local instant payment solution.
Meanwhile, IATA says African travellers are less likely than passengers in other regions to embrace biometric technology, according to the International Air Transport Association (IATA), which released its 2026 Global Passenger Survey (GPS) this week.
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The survey identified concerns about data privacy as the main barrier to biometric adoption in Africa, despite strong passenger interest in digital travel tools and satisfaction levels that rank among the highest globally.
The survey identifies several concerns that continue to limit biometric use in the region including data breaches, information being shared with other organizations, a lack of clarity about how data is used, uncertainty about how long it will be stored, and doubts about whether it can be deleted. Despite this, African travellers show some of the strongest interest in digital travel solutions of any region and are among the most satisfied with their journeys. They are also the most likely to have been discouraged from visiting a destination by immigration requirements.
In the Asia-Pacific, travellers report the highest overall satisfaction as the region is second in its willingness to use biometrics, though concerns about data breaches remain strong. Immigration rules also deter travel there, particularly because of how complex the process is.
European travellers report the lowest overall satisfaction and are the most cautious about adopting digital travel technology. Their use of both artificial intelligence and biometrics falls below the global average, and they are less willing than travellers elsewhere to use biometrics and digital passports during booking and online check-in.
North American travellers make the heaviest use of biometrics but also express the strongest concern about data breaches. Worries about data being shared with other organizations, and about a lack of information on how data is handled, are higher than the survey average. North Americans are the least likely to have been put off a destination by immigration requirements.
Latin America and the Caribbean recorded the largest improvement in overall satisfaction compared with 2025, and its travellers rank as the second most satisfied globally. They are among the most likely to prefer finishing immigration procedures before reaching the airport and show a strong willingness to share immigration information digitally in advance. Biometric use in the region is below average, while concerns about how personal data is shared and handled are the highest of any region.
Middle Eastern travellers are the most likely to use AI for trip planning and show the strongest interest in digital passports and biometric identification. Satisfaction among those who have used biometrics is the highest of any region. Among travellers deterred by immigration requirements, cost is cited more often than elsewhere, although complexity remains the leading concern.
