Global Airlines Stop Paper Tickets, Switch to All-Electronic

Global airlines, struggling with surging fuel costs, stopped offering paper tickets on most flights today, completing a switch to all-electronic bookings that are 90 percent cheaper to handle.
The International Air Transport Association, the main clearinghouse connecting airlines and travel agents, will no longer supply paper tickets from June 1, spokesman Steve Lott said last week. The group, which used to handle 340 million paper tickets a year, will now track all bookings online. Passengers will just get a print-out.
Electronic tickets already account for about 95 percent of bookings, driven by the rise of Internet sales and airlines seeking to cut $3 billion a year in global processing costs. Virtual tickets allow online check-in, simplify reservation changes and can't be lost.
Electronic tickets cost about $1 each to process, according to IATA. Paper ones are 10 times more expensive to handle, as they need to be physically moved between the travel agency, airport and airline. The switch, the culmination of a four-year program, will also save about 50,000 trees a year, according to IATA, whose approximately 240 airline members account for about 94 percent of scheduled international airline traffic.
The savings from electronic tickets have helped airlines as jet-fuel costs have almost doubled in the past year. Global airline profits will likely fall 20 percent this year because of fuel, according to IATA.
As of the end of April, most regions of the world were issuing electronic tickets for at least 85 percent of bookings, according to IATA. The former Soviet states were the main laggards because of laws requiring paper tickets.
Paper tickets issued before today's deadline are still valid for travel. Carriers can also continue offering paper tickets through channels other than IATA.
01/05/08 Neil Denslow/Bloomberg

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Categories: Foreign Jun 2008, Indian Aviation- In General Jun 2008