Norse Atlantic Airways has commenced the use of Swiipr ’s digital passenger compensation payments system at John F. Kennedy International, Miami International, and Los Angeles International airports.

The service will soon extend to Harry Reid International Airport in anticipation of direct flights between London Gatwick and Las Vegas starting later in September 2024. The Norwegian airline, which began its partnership with Swiipr in May 2024 for its European operations, is the third carrier in the US to adopt the travel paytech company’s system. Swiipr, which recently secured GBP 6 million in Series A funding, now supports real-time compensation and vouchers for inconvenienced passengers at 28 airports across the US.

Swiipr's solution provides digital funds to passengers experiencing flight delays or disruptions, enhancing customer service by streamlining compensation processes. Swiipr, launched in 2020, is used by 26 airlines across 70 countries. The platform, which focuses on transforming outdated passenger compensation systems, aims to improve passenger experiences and operational efficiency by up to 60%.

Impact of disruption compensation on airlines Legacy disruption compensation systems have long posed financial challenges for airlines. These outdated processes often involve manual handling of passenger claims, resulting in significant administrative costs and delays in payments. As airlines face increasing flight disruptions due to factors like weather, operational issues, and rising passenger traffic, the burden of managing compensation has only grown.

Furthermore, as compensation claims accumulate, inefficiencies in processing and payouts can lead to dissatisfied customers and a tarnished reputation, which in turn affects long-term customer loyalty. The financial impact extends beyond operational inefficiencies. Regulatory requirements for compensating passengers, especially in regions like the European Union under EC 261, have imposed stringent guidelines for timely reimbursements.

Non-compliance with these regulations can lead to heavy fines and legal penalties, exacerbating the financial strain on airlines. In the US, growing consumer protection measures from the Department of Transportation are placing additional pressure on airlines to ensure swift compensation for disrupted passengers. .