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    Global airlines discontinue paper tickets,
    switch to all-electronic booking system

    HONG KONG—Global airlines, struggling with surging fuel costs, stopped offering paper tickets on most flights Sunday, completing a switch to all-electronic bookings that are 90-percent cheaper to handle.

    The International Air Transport Association (IATA), the main clearing-house connecting airlines and travel agents, will no longer supply paper tickets from June 1, spokesman Steve Lott said last week. The group, which used to handle 340 million paper tickets a year, will now track all bookings online. Passengers will just get a printout.

    Electronic tickets already account for about 95 percent of bookings, driven by the rise of Internet sales and airlines seeking to cut $3 billion a year in global processing costs. Virtual tickets allow online check-in, simplify reservation changes and can’t be lost.

    “There’s no headache digging into my bag for tickets in the rush before boarding,” said Shanghai-based journalist Tiffany Wu, who flies at least twice a month. “It’s also very easy to change a booking simply by making a phone call.”

    Electronic tickets cost about $1 each to process, according to the IATA. Paper ones are 10 times more expensive to handle, as they need to be physically moved between the travel agency, airport and airline.

    “Getting rid of the paper makes everything more efficient,” Washington-based IATA spokesman Lott said.

    The switch, the culmination of a four-year program, will also save about 50,000 trees a year, according to the IATA, whose approximately 240 airline members account for about 94 percent of scheduled international airline traffic.

    The savings from electronic tickets have helped airlines as jet-fuel costs have almost doubled in the past year. Global airline profits will likely fall 20 percent this year because of fuel, according to the IATA.

    Carriers worldwide include AMR Corp.’s American Airlines Inc., the world’s largest, Qantas Airways Ltd. and Korean Air Lines Co. have also announced plans to cut routes because of surging oil prices.

    As of the end of April, most regions of the world were issuing electronic tickets for at least 85 percent of bookings, according to the IATA. The former Soviet states were the main laggards because of laws requiring paper tickets.

    Paper tickets issued before today’s deadline are still valid for travel. Carriers can also continue offering paper tickets through channels other than the IATA. (Bloomberg)

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    read more