Technology & Innovation
Air2Pay Cuts Airline Payment Fees via Open Banking Innovation
Paxport’s Air2Pay reduces transaction costs by 0.3-0.7%, saving airlines millions annually through bank transfers and virtual card technology.

Revolutionizing Airline Payments: How Air2Pay Cuts Costs Through Bank Transfers
In an industry where profit margins often hover around 2-3%, airlines constantly seek ways to optimize operational costs. Payment processing fees represent a significant expense, with traditional card networks charging between 1-3% per transaction. For carriers handling billions in annual revenue, these percentages translate into massive overhead that directly impacts profitability.
Paxport’s Air2Pay emerges as a potential game-changer, leveraging open banking technology to bypass card network fees. This solution arrives as airlines face increasing pressure to modernize payment systems while managing post-pandemic recovery costs. The aviation payment landscape has remained relatively unchanged for decades, creating ripe conditions for disruption through financial technology innovations.
The Air2Pay Architecture
At its core, Air2Pay combines virtual card technology with direct bank transfers through Open Banking APIs. Each transaction generates a unique virtual card containing flight-specific metadata like passenger details and routing information. This approach maintains familiar payment workflows while embedding three key innovations:
1. Real-time FX conversion at interbank rates (saving 0.5-2% vs. commercial rates)
2. Automated reconciliation through machine-readable transaction data
3. Split-payment capabilities for complex multi-party bookings
The system integrates with existing airline reservation systems through Paxport’s distribution ecosystem, which already connects 200+ airlines with global travel sellers. Early adopters report 68% faster payment settlement times compared to traditional card processing.
“Where traditional payments create 7 separate touchpoints for reconciliation, Air2Pay collapses this into a single automated process,” explains Dave Robinson, Pax2Pay Managing Director.
Financial Impact Analysis
For a mid-sized airline processing $500 million annually, the savings could be substantial. Typical payment costs break down as:
– Card network fees: $10M (2% of total)
– FX losses: $2.5M (0.5%)
– Reconciliation labor: $1.8M
Air2Pay’s blended cost structure reduces these expenses to an estimated 0.3-0.7% of transaction volume. This translates to potential annual savings exceeding $11 million for our example carrier. The platform also introduces new revenue streams through rebates on volume processed – a model similar to credit card reward programs.
Industry-Wide Implications
The aviation sector processes over $800 billion in annual card payments. A 1% reduction in processing fees industry-wide would unlock $8 billion in savings – equivalent to the combined market cap of three mid-sized European carriers. This financial engineering comes as IATA pushes its New Distribution Capability (NDC) standard, which Air2Pay complements through enhanced payment flexibility.
Security benefits add another layer of value. Virtual cards’ single-use nature reduces fraud exposure, while the elimination of bulk card data storage minimizes PCI compliance burdens. Emirates has reported 40% fewer payment-related fraud incidents after implementing similar virtual card solutions in 2022.
“We’re not just changing how airlines get paid – we’re redefining their entire financial supply chain,” states Simon Taylor, Paxport’s Head of Commercial.
Future of Aviation Payments
As Air2Pay gains traction, expect ripple effects across travel finance. Hotel chains and cruise operators already monitor its adoption, recognizing similar pain points in their payment workflows. The technology’s API-first design enables rapid adaptation to other sectors, potentially disrupting the $1.4 trillion global travel payments market.
Regulatory tailwinds boost Air2Pay’s prospects. The EU’s PSD2 directive mandates open banking infrastructure, while the UK’s CMA9 initiative pushes similar reforms. These frameworks create legal pathways for bank transfer solutions to challenge card networks’ oligopoly, particularly in aviation’s multinational transaction environment.
FAQ
How does Air2Pay handle chargebacks compared to traditional cards?
The system uses escrow-style holds on bank transfers, reducing chargeback risks through prefunded transactions.
Can airlines using legacy systems integrate Air2Pay?
Yes, through API gateways that interface with common PSS platforms like Amadeus Altéa.
What currencies does Air2Pay support?
Currently 11 currencies including EUR, USD, and GBP, with plans to add 8 more by 2025.
Photo Credit: news.alaskaair.com
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Technology & Innovation
NASA X-59 Completes First Supersonic Flight at Mach 1.1
NASA’s X-59 reached Mach 1.1 over the Mojave Desert on June 5, 2026, marking the first supersonic flight of the Quesst mission.

NASA’s experimental X-59 aircraft successfully completed its first supersonic flight over the Mojave Desert on June 5, 2026, marking a critical milestone in the agency’s Quesst mission to gather acoustic data that could eventually prompt regulators to lift the ban on commercial supersonic travel over land.
In a press release issued by the National Aeronautics and Space Administration (NASA), the agency confirmed that the Lockheed Martin-built aircraft exceeded the speed of sound, reaching approximately Mach 1.1 (713 mph) at an altitude of 43,400 feet. The 81-minute flight, piloted by NASA test pilot Jim “Clue” Less, originated from Edwards Air Force Base in California at 11:08 a.m. PDT (18:08 UTC).
Expanding the flight envelope
The supersonic milestone follows a period of intensive subsonic testing. Over the 90 days preceding the June 5 flight, the X-59 team completed 16 flights to expand the aircraft’s flight envelope through lower-altitude and slower-speed tests. The aircraft previously reached 43,000 feet and roughly Mach 0.95 during testing in April 2026.
NASA Administrator Jared Isaacman highlighted the program’s momentum since the aircraft’s initial flight on October 28, 2025.
“X-59 is getting ready for its quiet supersonic debut. Since the aircraft’s first-flight on Oct. 28, 2025, the team has made tremendous progress, flying 16 times in the last 90 days and getting into a steady test rhythm. In the coming days, we expect to take the next step and push to Mach 1.4,” Isaacman stated.
During the supersonic run, the aircraft’s eXternal Vision System digital display indicated a speed of Mach 1.077 when the true speed was Mach 1.0. NASA attributed this discrepancy to system calibration, which engineers will fine-tune as the flight envelope continues to expand.
Acoustic testing and regulatory implications
The Quesst mission’s ultimate goal is to demonstrate that the X-59 can fly at supersonic speeds while producing a “quiet thump” rather than a disruptive sonic boom. However, acoustic testing was not the primary focus of the June 5 flight. A McDonnell Douglas F-15 Eagle operated by NASA flew alongside the X-59 as a chase plane. The loud sonic booms generated by the F-15 intentionally obscured any sound produced by the experimental aircraft, as formal acoustic measurements are reserved for a later phase of the program.
The next phase of testing will push the X-59 to Mach 1.4 (approximately 925 mph) at an altitude of roughly 55,000 feet. These parameters represent the mission conditions required for eventual community noise demonstrations over the United States. The data collected during those future flights will be provided to the Federal Aviation Administration (FAA) and international regulators to inform potential rule changes regarding overland supersonic flight.
Michael Kratsios, Assistant to the President for Science and Technology, noted the broader significance of the achievement, describing the flight as a testament to American leadership in aerospace innovation.
AirPro News analysis
The successful supersonic transition of the X-59 represents a technical validation of the aerodynamic design developed by Lockheed Martin Skunk Works, but the regulatory hurdles ahead remain substantial. While reaching Mach 1.1 proves the airframe’s basic supersonic capability, the true test of the Quesst mission will be the acoustic data collection at Mach 1.4. If the acoustic signature performs as modeled during community overflights, we expect aviation regulators will face increased industry pressure to establish new noise certification standards for commercial supersonic aircraft, potentially opening a lucrative new market for aerospace manufacturers.
Sources: NASA Press Release, NASA Quesst Blog
Photo Credit: NASA
Sustainable Aviation
ICAO and IATA Enhance Sustainable Aviation Fuel Tracking Partnership
ICAO and IATA strengthen cooperation to improve transparency and tracking of Sustainable Aviation Fuels, supporting aviation’s net-zero goals by 2050.

This article is based on an official press release from ICAO.
ICAO and IATA Deepen Cooperation to Boost Sustainable Aviation Fuel Tracking
On June 2, 2026, the International Air Transport Association (IATA) and the International Civil Aviation Organization (ICAO) announced an enhanced partnership during the ICAO Aviation Climate Week in Montreal. According to an official press release from ICAO, the collaboration is designed to advance transparency and integrity in tracking the progress, development, and deployment of SAF.
The global aviation sector has formally committed to achieving net-zero carbon emissions by 2050. Industry estimates indicate that SAF is the most significant decarbonization lever currently available, expected to account for up to 65 percent of the total carbon mitigation required to reach this mid-century target. The joint announcement underscores that close collaboration between industry and states, supported by high-quality data, is essential for credible tracking of cleaner aviation energies.
This strategic alignment was unveiled during the “One Global Path: Advancing Net-Zero Aviation” conference, which serves as a global platform for aviation leaders to monitor progress on the ICAO Global Framework for SAF. By integrating robust tracking systems, both organizations aim to ensure that climate investments are recognized consistently across international regulatory frameworks.
Enhancing Transparency and Global Tracking
The Role of the CADO SAF Registry
A central component of this enhanced tracking initiative involves the evaluation of existing fuel accounting systems. According to supplementary industry research, IATA and ICAO will explore how platforms like the SAF Registry can support international reporting. Launched in March 2025 and now managed by the independent, Montreal-based Civil Aviation Decarbonization Organization (CADO), the registry is designed to record SAF transactions accurately and transparently.
Because physical SAF supply is not yet available at all geographical locations, the registry utilizes a “Book and Claim” approach. This system decouples the physical fuel from its environmental attributes, allowing airlines and corporate customers to claim the environmental benefits of SAF without physically loading it into their specific aircraft. This methodology is critical for preventing double-counting and ensuring immutable tracking of emissions reductions.
Aligning with ICAO Frameworks
The press release notes that the organizations agreed to explore how SAF registries and their collected data can support the implementation of ICAO’s Long-Term Aspirational Goal (LTAG) Monitoring and Reporting (LMR) methodology. Furthermore, the data collected through these robust systems helps airlines meet international regulatory obligations, such as ICAO’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), by providing verifiable emissions reduction data to state authorities.
Industry Leadership Perspectives
Leadership from both organizations emphasized the necessity of verifiable data to build trust and accelerate the transition away from conventional jet fuel. In the official release, IATA Director General Willie Walsh highlighted the importance of accurate measurement:
“Credible tracking is necessary to know the emissions reductions delivered by SAF. The data collected by the CADO SAF Registry, among others, has the potential to meet this need. By working with ICAO to strengthen how progress on SAF use is measured and reported, we can accelerate deployment, build trust across stakeholders, and put aviation on track for net zero by 2050. This will set a great example for individual states to work with industry to make the most of the SAF data that is being accumulated.”
Willie Walsh, IATA Director General
Echoing this sentiment, ICAO Secretary General Juan Carlos Salazar pointed to the unprecedented level of coordination required to meet the industry’s mid-century climate goals:
“Achieving ICAO’s vision of net zero carbon emissions from international aviation by 2050 will require unprecedented levels of transparency and cooperation across the entire sector. This agreement will support the strengthening of ICAO’s leadership as we support States and industry in their scaling up of sustainable aviation fuels and other aviation cleaner energies.”
Juan Carlos Salazar, ICAO Secretary General
Overcoming Supply Challenges and Market Implications
Current Production Realities
Despite the critical role of SAF in decarbonizing air travel, production volumes have historically lagged behind demand. According to industry data, SAF accounted for just 0.3 percent of global jet fuel production at the end of 2024. Scaling up production remains the primary bottleneck for the Commercial-Aircraft sector, making the efficient allocation and tracking of existing supplies paramount.
To build trust and ensure impartial governance over these limited supplies, IATA spun off the management of the SAF Registry to CADO in early 2025. CADO’s inclusive structure allows participation from governments, fuel producers, airlines, and corporate customers, fostering a harmonized global market.
AirPro News analysis
We view the deepening cooperation between ICAO and IATA as a necessary maturation of the SAF market. By standardizing how environmental attributes are tracked and claimed, this partnership helps create a liquid, global market for sustainable fuels. This standardization provides certainty to airlines that their environmental claims are valid, and assures producers that they can accurately account for deliveries. Ultimately, a unified, credible tracking system mitigates the risk of greenwashing, ensuring that corporate Scope 3 emissions reporting and airline compliance claims are backed by immutable, verified data. This regulatory certainty is exactly what investors need to fund the massive scale-up in SAF production facilities required over the next two decades.
Frequently Asked Questions (FAQ)
What is the CADO SAF Registry?
The CADO SAF Registry is an independent platform launched in March 2025 to accurately and transparently record Sustainable Aviation Fuel transactions. It is managed by the Civil Aviation Decarbonization Organization, a Montreal-based non-profit.
What is the “Book and Claim” approach?
The “Book and Claim” system allows airlines and corporate customers to purchase the environmental benefits of SAF even if the physical fuel is not available at their specific departure airport. The physical fuel is used elsewhere in the aviation system, but the environmental credit is securely tracked and claimed by the purchaser, preventing double-counting.
Why is SAF critical for aviation’s net-zero goals?
Sustainable Aviation Fuel is considered the most viable near-term solution for reducing aviation emissions, as it can be used in existing aircraft engines. Industry projections estimate that SAF will need to provide up to 65 percent of the carbon mitigation required for the aviation sector to reach net-zero emissions by 2050.
Sources: ICAO
Photo Credit: ICAO
Technology & Innovation
IAG Deploys AISmartPlan AI Maintenance Platform at Aer Lingus
IAG signs multi-year deal to deploy AISmartPlan AI maintenance planning platform at Aer Lingus, reducing planning time from hours to minutes.

This article is based on an official press release from International Airlines Group (IAG).
On May 28, 2026, International Airlines Group (IAG) announced a multi-year commercial agreement between its Irish flag carrier, Aer Lingus, and AISmartPlan, an advanced AI-powered aircraft maintenance planning platform. According to the official press release, the partnership follows a highly successful three-month trial conducted during the 2025 cohort of the IAGi Accelerator programme.
The integration of AISmartPlan’s technology is designed to replace traditionally manual maintenance production planning with an intelligent, automated system. By pulling together critical operational data, ranging from flight schedules and aircraft availability to workforce constraints, the platform generates optimized maintenance plans, reducing a process that previously took hours down to mere minutes.
As airlines globally face supply chain bottlenecks and labor shortages, the adoption of artificial intelligence to streamline workforce management and reduce aircraft downtime is becoming increasingly critical. This deployment at Aer Lingus serves as a significant milestone in IAG’s broader strategy to embed AI-driven efficiencies across its portfolio of airlines.
Transforming Maintenance with Artificial Intelligence
From Manual Spreadsheets to Automated Workflows
According to industry data provided in the supplementary research report, AISmartPlan was founded by Nicolas Grondin and developed by Sydney-based Redback Software. The platform is engineered to integrate seamlessly with an airline’s existing Maintenance and Engineering (M&E) software. By doing so, it automatically matches the right maintenance technicians to specific aircraft and tasks at the optimal time.
The press release highlights that the system offers intuitive, drag-and-drop visualization tools, enabling maintenance teams to quickly understand, adapt, and take ownership of their schedules. Furthermore, the platform includes a dedicated chat feature connecting planners and technicians, alongside an AI assistant capable of answering operational questions and generating reports.
“The way maintenance tasks were allocated to our engineers was previously highly manual and time consuming, which limited how far ahead we could plan. The IAGi Accelerator programme provided us with a valuable opportunity to work with AISmartPlan and test an AI optimised approach using real operational constraints. This partnership marks a fundamental change in how we plan and optimise maintenance. What used to take hours each day can now be done in minutes, and with far greater confidence in the outcome.”
The Role of the IAGi Accelerator
Fast-Tracking Aviation Technology
The rapid deployment of AISmartPlan, moving from a proof of concept to a working, commercial-grade solution in just three months, was facilitated by the IAGi Accelerator. Formerly known as “Hangar 51,” the program rebranded to “IAGi” in March 2025 to align more closely with the parent brand. Entering its 10th year, the accelerator has partnered with more than 120 companies to test and validate technologies in live aviation environments.
The research report notes that upon its 2025 rebrand, IAG’s venture arm (IAGi Ventures) committed €200 million over five years to invest in aviation and travel technology startups. The 2025 cohort was the program’s largest to date, featuring 29 startups from 11 countries, with a heavy focus on artificial intelligence.
“Our goal has always been to fully automate maintenance planning and make complex plans instantly visible and actionable. The IAGi Accelerator gave us an incredible opportunity that early-stage companies rarely get – deep operational engagement with an airline that was willing to test, challenge and cocreate the solution with us. Aer Lingus’ feedback directly shaped the product and proved its market fit in aviation.”
Broader Industry Implications
AirPro News analysis
We observe that the aviation industry is undergoing a systemic shift away from reactive maintenance, often reliant on legacy tools and spreadsheets, toward proactive, AI-driven predictive maintenance. In a sector where an extra hour of aircraft downtime can cost thousands of dollars, the ability to dynamically schedule and optimize maintenance is a distinct competitive advantage.
The AISmartPlan agreement is not an isolated technological upgrade; it is indicative of a much larger AI transformation at IAG. We note that IAG’s in-house AI Labs, based in London and Barcelona, recently developed an “Engine Optimisation System.” This proprietary system runs millions of “what-if” scenarios to dynamically schedule engine maintenance. Much like AISmartPlan, this engine system was first implemented at Aer Lingus, which frequently serves as the group’s testing ground, and is slated for rollout across British Airways, Iberia, and Vueling.
The success of AISmartPlan underscores the immense value of corporate accelerators in highly regulated industries. By embedding early-stage startups directly into complex operational environments, major airline groups can fast-track the development of deep-tech solutions that might otherwise take years to achieve market fit.
Frequently Asked Questions
What is AISmartPlan?
AISmartPlan is an advanced AI-powered aircraft maintenance planning platform that automates the scheduling of maintenance tasks, matching engineers to aircraft based on operational data, flight schedules, and workforce constraints.
How much time does AISmartPlan save?
According to Aer Lingus, the implementation of the platform has reduced the time required for daily maintenance planning from hours to minutes.
What is the IAGi Accelerator?
Formerly known as Hangar 51, the IAGi Accelerator is International Airlines Group’s flagship innovation program. It partnerships with startups to test and validate new technologies in live airline environments. The program has worked with over 120 companies in its 10-year history.
Photo Credit: IAG
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