Many airlines go cashless for in-flight purchases

Airline passengers, no longer surprised that they must pay for food and beverages, now increasingly face another change - credit-card-only flights.

When USA3000 switched in May to a cashless cabin for onboard purchases, flight attendants loved it. They no longer had to carry around wads of cash, or to be responsible for stashing money on overnight layovers.

"It's much easier than making change," said lead flight attendant Laura Korpel, on a recent USA3000 flight to Fort Myers, Fla. "We've had great reception from passengers."

More airlines are going cashless. Southwest, Frontier, JetBlue, AirTran, Midwest, Virgin America and Alaska airlines have eliminated cash purchases on flights.

Crews use handheld card readers to swipe credit or debit cards for purchases, such as cocktails, headphones and snacks.

In December, US Airways began testing card-scan devices on about 600 flights. Since Jan. 5, passengers on most of US Airways' 1,300 mainline flights can pay with cash or credit cards.

"The only complaint is from that occasional customer who doesn't have a credit card," said Cara Maggio, USA3000 flight attendant, "but that's not too often."

When that happens, a nearby passenger often will offer, " 'Give me your $5, and I'll put it on my card.' They help each other out," she said.

Travelers tend to spend more if they put purchases on a card - running a tab, or buying a round of drinks for family and friends.

"We did a lot of customer communication leading into it," said Whitney Eichinger, spokeswoman for Southwest, Philadelphia's second-largest airline, which went cashless in September. "The transition was seamless."

USA3000, an affiliate of Apple Vacations, in Newtown Square, said the battery-operated machines have made it easier to track and adjust inventory. "We can take things out that are not selling well, and add other items in," said director of operations Jack Eastman.

Midwest Airlines, in Milwaukee, went cashless in March 2007 to avoid crews' carrying large amounts of money and storing it in hotel rooms.

"We were dedicating a large amount of resources to accounting for this cash," said Midwest spokesman Michael Brophy. "Our onboard sales actually increased when we no longer accepted cash."

Switching to credit cards also boosted onboard sales for Alaska Airlines.

The Anchorage-based carrier tested acceptance of the cards and found two areas of concern: children traveling alone, and people living in remote areas, where "cash is the way they do business, and a lot of folks don't have credit cards," said spokeswoman Marianne Lindsey.

The airline resolved those concerns by selling vouchers at some airport ticket counters to use for in-flight purchases.

Frontier Airlines, which went cashless in April 2007, gives a complimentary snack to teenagers and children traveling as unaccompanied minors, said spokesman Steve Snyder. "Customer feedback has been positive."

Northwest, Continental and United Airlines still accept cash only for purchases on flights.

Delta, American, and Air Jamaica accept both credit cards and cash, representatives said.

"We are studying the idea of whether we want to go all the way to cashless, but we've made no firm decisions," said American spokesman Tim Smith. "There are some markets, some countries, like parts of the Caribbean, where there aren't as many credit-card-carrying passengers."

"It's just the culture," he said. "Some of our international network is more receptive to it than others."

Virgin America takes the cashless cabin to another level.

The San Francisco-based airline's Airbus A320 planes have touch-screen entertainment units at each seat. Passengers swipe a credit card under the monitor to buy food and drinks.

"People order from their seat-back screen, and the flight attendant brings it to passengers on a tray," said spokeswoman Abby Lunardini.

The cashless cabin is becoming the norm, said George W. Hamlin, aviation consultant in Fairfax, Va. "This reflects a trend in society in general."

People often conserve their cash when traveling for places they absolutely have to use it - in taxis, for example, he said.

"Going cashless simplifies the accounting immensely," said Hamlin. "And it probably, in some cases, also reduces fraud. It may not be that many years before young people will ask, 'What was this thing called cash?' "