The International Air Transport Association (IATA) and ATPCO have announced a new partnership that aims to consolidate their passenger ticket taxes, fees and charges (TFC) solutions, which is intended to reduce costs whilst simplifying access to data used by airlines to determine the collection of TFCs.
Currently, the IATA provides TFC data to airlines whilst ATPCO provides automation solutions to integrate said data into their pricing and settlement processes, each of which requires the use of separate subscription services and data processes. The new partnership will now see these services offered as a single, unified offering.
TFCs include charges and other taxes, such as VAT, security, passenger and airport services charges which are collected by airlines from passengers on behalf of both governments and authorities internationally.
Data provided by IATA shows that TFCs make up roughly 20% of the cost of travel, with around 147 billion USD in charges collected by airlines each year, which are, in turn, remitted to authorities in full.
Tom Gregorson, Chief Strategy Officer at ATPCO, said:This partnership was created with airlines in mind, and we are proud to have collaborated with IATA to create a solution that helps airlines better manage taxes, fees, and charges within their retailing strategies. By providing precise data and services that can be integrated and automated in airline pricing and accounting processes, airlines can ensure accurate collection of taxes, save time and money.
The new solution is set to be implemented across three phases. Starting in December 2025; all ATPCO Community Participation member airlines will receive a link with direct access to the IATA Ticket Tax Box Service (TTBS) for their home country (TTBS is an interactive directory that provides the latest globally published TFCs), before IATA and ATPCO begin to consolidate their TFC solutions into one offering in the first quarter of 2026.
All current products will be available directly from IATA, with ATPCO providing development and technical support for the product portfolio in order to establish a unified process for both reporting and managing TFC information whilst ensuring consistent TFC data is available to airlines.
Long term; IATA and ATPCO have committed to the development of more advanced TFC solutions that aim to streamline the management and accounting of TFCs on airfares, as well as associated ancillary services. Such solutions will, according to IATA, will be essential support for airlines and their partners as the sector transitions to Offers and Orders.
Frederic Leger, Senior Vice President of IATA Products & Services, said:Collecting TFCs imposes a significant administrative and cost burden on the airline industry. Through this partnership, we aim to improve access to standardised TFC information, reduce avoidable industry costs, and improve transparency and administrative efficiency.
It also allows us to begin pivoting our financial services portfolio to support the industry's move to Offers and Orders.
