Some airlines steering clear of cash, opting for credit cards instead

Fliers, get ready for the cashless cabin, where you need a credit or debit card to buy food, drinks, headsets and anything else onboard. No currency needed -- or wanted.

Some U.S. airlines already ban cash, and others are thinking about it.

Last week, JetBlue Airways announced it would take only credit or debit cards for onboard purchases starting Nov. 1. American Airlines, which accepts cash and cards, is testing the card-only option on hundreds of flights from San Francisco through the end of this month.

Not long ago, cash ruled the skies, but no more.

Besides American and JetBlue, of the dozen U.S. airlines that I recently contacted, five took only cash for onboard purchases (except for duty-free items); five took only cards on many or all flights; Delta Air Lines took both; and Alaska Airlines was adding the option of using cards.

Aloha, Frontier and Midwest airlines adopted their plastic policies this year, and Hawaiian finished going cashless in January. (AirTran has been cashless since 2004.)

“I think it’s the wave of the future,� Alaska Airlines spokeswoman Caroline Boren said of the rush to adopt credit in the cabin. “We’re increasingly living in a cashless society.�

Representatives at several airlines, including Alaska and Northwest, which plans to add the plastic option next year, said they would consider going credit-only in the future.

Not every company is sold on the idea. Southwest Airlines, for instance, is investigating whether to accept cards but doesn’t plan to end its cash-only policy, said spokeswoman Brandy King.

Airlines that have gone cashless say few passengers complain.

“We haven’t seen much push-back,� said Joe Hodas, spokesman for Frontier, which since April has required credit or debit cards for onboard purchases of alcohol and seat-back TV service. It makes an exception for unaccompanied minors, who can buy TV service with cash at the ticket counter.

Aloha, which went cashless in the summer on mainland and mainland-to-Hawaii routes, has heard little grumbling, said spokesman Stu Glauberman. The airline serves free meals but charges for alcohol and movie packages ($5) with snacks and headsets. Unaccompanied minors get movie packages for free.

Plastic spares passengers the hassle of finding exact change (or waiting for flight attendants to solicit fellow fliers for change) and lets them keep cash they may want to use after they land. Business travelers find it easier to expense. So credit can be convenient.

But using only plastic? That’s another story. I’m not the only flier who prefers cash for small purchases. It keeps my credit-card bill uncluttered, and I find that I spend less. I also worry less about identity theft when I limit the use of my cards.

As captives of the cabin, however, passengers may get no choice. Credit has many advantages for airlines.

Let’s start with profit.

“It has been a huge success,� Thom Nulty, Aloha’s senior vice president for marketing and sales, said of his airline’s switch to plastic. In-flight sales of alcohol increased 30% or more on Aloha flights that went cashless, he said.

Glauberman said, “People are much more likely to spend money on a credit card than to fish the cash out of their wallets.�

Then there’s efficiency.

“Cash is messy onboard, from a handling standpoint,� said Greg Latimer, Alaska Airlines managing director of brand and product marketing. “It’s very time-consuming, whereas a credit-card transaction is seamless and much easier to handle.�

Using credit also helps the airline keep track of inventory.

Crew members can swipe cards through hand-held readers, which record the sales, said Candace Kolander, coordinator for air safety, health and security at the Assn. of Flight Attendants. Then they upload the data after landing.

With cash, the crew typically must log sales by hand and tally them at the end of their shifts, she said.

Even so, Kolander thinks fliers should be able to choose between cash and cards.

In Europe, where crews on budget airlines such as Ryanair and EasyJet accept credit cards and make change onboard in several currencies, that seems to pose no problem.

Why not here?

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