Millennials share of wallet shifting to travel as Afterpay takes off for Jetstar

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Melissa Jenkins
(Australian Associated Press)

Travellers can pay for their flights in instalments after Jetstar became the first Australian airline to sign up with payment platform Afterpay.

Afterpay allows travellers to pay for flights in fortnightly instalments and can be used for domestic tickets priced between $200 and $1,000 booked at least eight weeks in advance, with a $10 service fee per transaction.

Jetstar Group chief executive Jayne Hrdlicka said the payment service could be extended to international flights.

“Partnering with Afterpay gives our customers the option to lock in low fares at today’s prices and pay over time, even during our sales,” she said on Wednesday.

Afterpay co-founder Nick Molnar says millennials are spending a growing slice of their disposable income on travel.

“There has been a clear shift in millennials share of wallet towards the services industry and more specifically travel,” he said.

Afterpay Touch shares soared after the deal was announced and were trading 8.25 per cent higher at $4.33 at 1300 AEST.

Shares in Qantas, which owns Jetstar Airways in Australia and New Zealand and partially owns the discount airline elsewhere, were trading 1.93 per cent firmer at $5.81.

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