American Airlines Becomes First Air Carrier With Installment Plans For Flights
Image via American Airlines
As the travel industry begins to reopen, American Airlines hopes to offer its services to those who might need some extra time to save up for their next holiday.
The company has announced that it is partnering with installment loan brand Affirm to allow travelers the option to pay for flights over time, instead of all at once upfront. This would make it the first air carrier to leverage such a service.
“While consumers are as eager as ever to get away, they remain conscious of fitting travel into their budget,” said Affirm’s COO Silvija Martincevic.
“According to a recent Affirm survey, 74% of Americans say they’ll spend more on travel this holiday season than ever before, while 60% are concerned that they can’t afford to travel as they would like to.”
In a report by CNET, the service is explained to work by letting customers pay off their purchases over time, with interest rates ranging from 0% to 30% depending on their credit score.
While credit cards may have similar installment plans, it often includes compound interest which accumulates, which Affirm does away with. This prevents customers from incurring additional costs.
[via CNET, cover image via American Airlines]
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