Airlines With Payment Plans

Several major airlines, including Air Canada, offer payment plans that let you pay for a flight in instalments instead of all at once. These plans are usually run by a financing company that partners with the airline, not by the airline itself.

The financing company pays the airline up front. You get your ticket right away and pay the company back over time.

If your airline doesn’t offer a plan, there are other ways to spread out the cost, from vacation package deposits to instalment options on a credit card.

Airlines That Offer Payment Plans

Uplift, a company that specializes in travel payment plans, lists Air Canada, United Airlines and Southwest Airlines among its airline partners. Its partner list also includes cruise lines, hotels and resorts.

Partnerships like these change over time, and a plan may not cover every fare or route. The airline’s own payment page shows what’s available for a specific trip.

How Airline Payment Plans Work

Each financing company sets its own terms, but the process usually looks like this:

1. You choose your flight and pick the payment plan option at checkout.
2. You apply with the financing company. It looks at your credit history, and the rate and terms you’re offered depend on it.
3. Some plans ask for a down payment when you book.
4. You get your ticket, and the rest is paid in monthly instalments until the balance is cleared.

These plans are a form of credit. Some charge interest, with rates that depend on your credit profile. Others run promotions with rates as low as 0%.

Other Ways to Spread Out the Cost of a Flight

Airline payment plans aren’t the only way to pay for travel over time.

• Vacation package deposits: Many vacation packages let you pay a deposit when you book and the balance before you leave. Since the trip is paid off before you go, it isn’t a loan.
• Buy now, pay later apps: Some general buy now, pay later apps can be used on travel booking sites as well.
• Credit card instalments: Some credit cards let you turn a large purchase, like a flight, into equal payments. Depending on the card, you set this up before or after the charge.
• Fare holds: Some airlines let you lock in a fare for a few days, usually for a fee. It buys you time to decide, but the full fare is still due when you book.

The Tradeoffs of Paying for Travel Over Time

The main draw is timing. A payment plan lets you book a trip now and pay for it as your paycheques come in. That flexibility comes with a few tradeoffs.

• The payments can outlast the trip. On a longer plan, you could still be paying for a vacation months after you’re back home.
• Changes get more complicated. A payment plan adds a third company to your booking. If a flight is cancelled or changed, sorting out a refund can involve both the airline and the financing company.
• A bigger budget can be tempting. Smaller monthly amounts can make a pricier flight or an upgrade feel more affordable than it really is.
• Missed payments cost money. Late fees and interest can raise the price of the trip, and missed payments can be reported to the credit bureaus.