Navigating turbulence: How aviation treasurers are innovating

As global economic turbulence redefines risk and opportunity for the aviation sector, industry treasurers are increasingly turning to innovation to stay airborne.

A leader in bespoke, technology-driven treasury solutions, HSBC invited treasurers from major airlines and travel agencies to discuss the economic headwinds reshaping treasury operations and the technology enhancements that could make a difference in running their businesses.

"The aviation sector has demonstrated remarkable resilience and growth post-pandemic, with treasuries becoming much more centralised," says Peter Crawley, Global Head of Sales, Global Payments Solutions at HSBC.

“At the same time, there’s pressure to get better at forecasting. That’s where real-time visibility is key, especially in the current uncertain environment, as is adapting to new payment landscapes,” he says.

Global financial markets remain on edge, and the aviation industry is particularly exposed, following the United States' protectionist policies and geopolitical escalation.

Some global manufacturers are exploring ways to re-route production, shift product mixes or even suspend exports. For example, Jaguar Land Rover paused Britain-made vehicle shipments to the U.S. in April to reassess pricing strategy under the new tariff regime.¹

More companies have also started holding larger cash buffers – but not yet the kind of war chests fit for recession, the panelists said.

But unlike 2008, this turbulence is not driven by a liquidity crunch. Instead, it’s shaped by rising, tariff-fuelled inflation risks, geopolitical fragmentation and unprecedented policy shifts.

With economic volatility and uncertainty swirling around the globe, card payment acceptance has picked up among suppliers that have not traditionally used it in business-to-business (B2B) relations.

"Suppliers want to get paid faster, while clients want to hold onto cash longer, so cards offer a good solution," says Kailash Nair, Regional Head of Commercial Cards, GPS at HSBC.

“We are seeing clients willing to explore new working capital payment means to satisfy both sides,” he says.

In business-to-consumer (B2C) settings, digital wallets, QR code payments and especially Buy Now, Pay Later (BNPL) are rapidly gaining ground in high-growth tourism markets, such as the Middle East and Asia, driven by a tech-savvy population and increasing smartphone penetration.

In the Middle East, the BNPL payment market is expected to jump by 19.4% to U.S.$5.79 billion in 2025 from the previous year, while in the Asia-Pacific it should grow by 14.5% to U.S.$211.7 billion, according to a report by ResearchAndMarkets.com. ²

Meanwhile, digital wallets increasingly offer more transparent and competitive exchange rates for cross-border transactions. The use of digital wallets can streamline payment processes, reduce the risk of errors and improve cash flow management.

Last year, HSBC joined forces with Mastercard to deploy the Mastercard Wholesale Program (MWP), a virtual card-based B2B payment product for its travel industry customers in the Middle East to advance secure, streamlined and automated B2B travel transactions. ³

“Both airlines and travel management companies benefit from the seamless way in which the payment is made,” says HSBC’s Nair. “It's not just about the card, it's about the whole transaction, level of detail, reconciliation benefits and removal of all the operational issues.”

Corporate treasury teams remain lean, but the complexity they manage has grown significantly. From increasing market volatility to stranded cash, treasurers are seeking more agile systems to stay on top of managing liquidity in real time.

“Digitisation and continued automation is super important, which is what we see happening in the aviation industry,” says Martijn Stoker, Global Head of Liquidity and Investment Solutions at HSBC.

“And getting global visibility of your balances is absolutely critical. If you have real-time payments and real-time collections, at the end of the day, you need real-time liquidity as well to be able to manage it directly,” he says.

With its strong global network and range of innovative solutions across the Middle East, North Africa and Turkey (MENAT), as well as the Asia-Pacific markets, HSBC is well positioned to support its aviation clients.

HSBC’s tailored solutions include Corporate and Treasury Application Programming Interface (API), which allows real-time access to bank statements, and Virtual Accounts, and ensures transparency and simplifies reconciliation. Both can be seamlessly integrated with an airline’s reservation system and the existing Enterprise Resource Planning (ERP) system.

Meanwhile, Artificial Intelligence (AI) and machine learning are fast becoming enablers, particularly in liquidity forecasting and fraud detection.

With over US$2.3 billion invested in digital solutions over the past decade, HSBC has been testing different AI tools, using them for actionable insights and detecting fraud, but all is still in early exploratory stages.

In another industry development, beneficiary self-management, already deployed in Europe to support the EU Regulation 261 traveler compensation rules, helps airlines streamline the process.

Instead of treasury teams handling each payment, passengers receive a secure code to claim compensation directly via HSBCnet. Payments are triggered through a simple CSV file using only an email or phone number, with travelers selecting their preferred currency.

This approach reduces administrative burden, supports FX flexibility and enables use of low-value payment rails for cost savings– benefiting both airlines and their customers.

As global turbulence reshapes financial and operational realities, treasury teams in the aviation sector are under growing pressure to be faster, smarter and more adaptable. By embracing innovation — whether through smarter payment flows, AI-driven forecasting, or real-time liquidity tools — airlines can turn uncertainty into strategic advantage.