SINGAPORE, 6 June 2024: Disjointed approaches to payments result in operational inefficiencies and lost revenues for airlines, according to a study released today by CellPoint Digital, a leader in digital payment solutions for the airline industry. 

The report, Payments Come of Age: A Global Study of Airlines and Their Payment Technology Needs and Challenges, offers a first-of-its-kind analysis of airlines’ payment challenges, their approaches to payment optimisation, and the technology that can help them achieve it.

Overcoming Limited Payment Options 

Based on a survey of 151 airline professionals worldwide, the research pinpoints specific challenges, including the limited availability of alternative payment methods (APMs) and regional payment options. Only 11% of surveyed airlines report being able to accept newer APMs like open banking and account-to-account payments. This limits their ability to expand and meet the payment expectations of travellers in crucial markets like Southeast Asia, where APMs are increasingly used for travel purchases.

The report also reveals that airline professionals believe they need to improve prominent areas of the passenger experience, like boarding (44%), customer support (40%), and check-in (39%), to remain competitive in this challenging environment. Crew scheduling (28%) and in-flight operations (27%) were other areas cited as requiring improvement.

‘Payments Come of Age’ analyses airlines’ payment-specific challenges and how professionals in different airline departments perceive those challenges. Revenue managers are more concerned than other airline professionals about a lack of flexible payment options (25% vs 21% survey average) and the inability to transact in passengers’ preferred currency (25% vs 23%). By validating the concerns of their internal payment experts and adopting comprehensive payment strategies such as Payment Orchestration, airlines can leverage optimised, streamlined payment processes to reduce costs, increase revenue, expand to new markets and improve the passenger experience.

CellPoint Digital CEO Kristian Gjerding comments: “Payment efficiency is as crucial as expanding route networks regarding airlines’ financial health. The evolution of payment processes towards Payment Orchestration proves that payments have come of age, unlocking profitability for airlines prepared to invest in innovation. By prioritising forward-looking payment strategies, airlines can deliver seamless booking and travel experiences for passengers, driving booking volume.”

Payment Challenges are Pervasive

The Payments Come of Age report also explores region-specific airline payment dynamics. For example, as LatAm emerges as a critical market for many global carriers, transaction success and payment efficiency are necessary for airlines to capitalise on the region’s potential.

As such, airlines serving Latin America are investing in instalment payment capabilities at a greater rate (35%) in 2025 than their European and Asian counterparts, responding to the demand for ‘Buy Now, Pay Later’ features in the LatAm market. Across the LatAm market, existing airline PSPs often lack local reach and comprehensive alternative payment method (APM) support, leading to lower transaction acceptance and revenue loss. Airlines can overcome this by investing in comprehensive payment strategies and offering their finance professionals a seat at the table.

Profit Protection 

Airline margins remain vulnerable even as carriers post record total profits. IATA predicts that net profit margin industry-wide will be 2.7% in 2024, a slim 0.1% increase over 2023, despite projected revenue growth of 7.6%. Increasing operational efficiency is the only way for airlines to drive bottom-line growth. Payments represent a significant opportunity– the industry spends over USD20 billion on payment costs, or about 3% of airlines’ total revenue and 78% of the industry’s net profit. Efficient payment processes, including Payment Orchestration, can help airlines boost conversions in direct and indirect sales channels at lower transaction costs, directly impacting profitability.

About CellPoint Digital 
CellPoint Digital is a fintech leader whose main solution is a Payment Orchestration Platform that optimises digital payment transactions from cards or alternative payment methods. CellPoint Digital has offices in Copenhagen, Dallas, Dubai, London, Miami, Pune, and Singapore. Visit www.cellpointdigital.com to learn more.

Here’s the report: Report copy: Payments Come of Age

(SOURCE CellPoint Digital)

SINGAPORE, 7 June 2024: Oneworld, a leading global airline alliance, has announced that Fiji Airways will become its 15^th full-member airline.

Fiji Airways, the flag carrier of Fiji, has achieved a valuable presence in the oneworld alliance for the past five years as a oneworld connect partner. 

It has now developed cooperative links with all OneWorld member airlines, paving the way to a more seamless integration as a full OneWorld member. Fiji Airways’ transition to full membership will commence immediately and be completed within a year.

Oneworld CEO Nat Pieper said: “We welcome them as our 15th full-member airline in the oneworld alliance. Fiji Airways is already part of the oneworld family, as we have had a highly successful relationship since the airline joined as a oneworld connect partner five years ago. With its tremendous growth, award-winning product and services, and acceleration of connections with all oneworld member airlines, Fiji Airways will strengthen our position as the premier airline alliance for international global travellers.”

Fiji Airways  Managing Director and CEO Andre Viljoen added: “As a full member airline, we are excited to enhance the travel experience for oneworld alliance frequent flyers, offering greater accessibility to Fiji and the South Pacific, and ensuring seamless connections and memorable journeys for Fiji Airways customers across the alliance network.”

Fiji Airways, with its hub at Nadi International Airport, serves 26 destinations in 15 countries and territories globally, including oneworld hubs at Sydney, Hong Kong, Los Angeles, and Tokyo. Fiji Link, a wholly owned subsidiary of Fiji Airways, will become an affiliate airline of oneworld and extend the alliance’s network even further by bringing its domestic flights to Suva, Nadi, Labasa, Taveuni and Kadavu; as well as regionally to the Pacific Island nations of Tonga, Samoa, Tuvalu and Vanuatu. 

Fiji Airways carried 2.2 million passengers in 2023, offering 2.8 million seats across its network. It has a fleet of 21 aircraft, including Airbus A350s, Airbus A330s, and Boeing 737s.

2024 marks the 25th anniversary of the oneworld alliance, founded in 1999 by American Airlines, British Airways, Cathay Pacific, and Qantas. Later this year, Oman Air will become the 14th member airline of the alliance, joining Alaska Airlines, American Airlines, British Airways, Cathay Pacific Airways, Finnair, Iberia, Japan Airlines, Malaysia Airlines, Qantas, Qatar Airways, Royal Air Maroc, Royal Jordanian and SriLankan Airlines.