The International Air Transport Association (IATA) and ATPCO announced a strategic partnership to fully consolidate their passenger ticket taxes, fees, and charges (TFC) solutions. This unification will significantly reduce costs for airlines while simplifying access to the trusted data required to accurately determine and collect global TFCs.
Currently, airlines subscribe to separate services: IATA provides the foundational TFC data, and ATPCO offers the automation solutions necessary to integrate that data into pricing and settlement processes. The new partnership will merge these offerings into a single, unified service, addressing a critical pain point for the industry.
TFCs—which include charges like VAT, security fees, and passenger and airport service charges—represent a major financial and administrative task for airlines, which collect these funds on behalf of governments and authorities globally. According to IATA data, TFCs make up approximately 20% of the cost of travel, totaling an estimated USD $147 billion collected and remitted by airlines every year.
The new consolidated service will be rolled out in three strategic phases to ensure a smooth transition and rapid delivery of value:
Phase 1 (Starting December 2025): All ATPCO Community Participation member airlines will receive 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 TFC information.
Phase 2 (Q1 2026): IATA and ATPCO will consolidate their existing TFC solutions into a single product portfolio. All current products will be offered directly by IATA, with ATPCO providing essential development and technical support. This establishes a unified process for managing and reporting TFC information, ensuring data consistency across the industry.
Phase 3 (Longer Term): IATA and ATPCO will collaboratively develop advanced TFC solutions designed to streamline the management and accounting of TFCs on airfares and associated ancillary services. These solutions are key to supporting airlines and their partners as the industry transitions to the modern retailing model of Offers and Orders.
“Collecting TFCs imposes a significant administrative and cost burden on the airline industry,” said Frederic Leger, Senior Vice President of IATA Products & Services. “Through this partnership, we aim to improve access to standardized 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.”
Tom Gregorson, Chief Strategy Officer at ATPCO, emphasized the customer-centric approach. “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.”
