What ARC means
ARC was established on 17 September 1984 and began operating on 1 January 1985, after US airline deregulation. It performs the job that a BSP does in most other markets: it accredits agencies, receives their ticket sales data and moves money between agencies and airlines through a single settlement.
ARC is governed by airlines. Its board, as listed in November 2026, includes executives from Delta, United, American, Southwest, Alaska, JetBlue, Air Canada, Lufthansa and Air France. ARC says it settles more than US$100 billion of US agency air sales each year, and reported that agency air ticket sales reached US$100.4 billion in 2025 across 9,978 retail, corporate and online agency locations.
Agencies work with ARC through IAR (Interactive Agent Reporting), where they view, void and refund transactions and authorise their weekly sales report. Since January 2025 that report must be authorised by 1:59 p.m. Eastern time on Tuesday in normal weeks. ARC also publishes market data, and said in late 2024 that NDC accounted for 18.4% of ARC-processed transactions in October that year, showing how settlement now covers both EDIFACT and NDC sales.
How ARC works
ARC settlement runs on a weekly sales cycle that ends on a period ending date (PED).
- Agency gains accreditationA US agency applies to ARC for accreditation and receives an ARC number, which lets it issue tickets on participating airlines through a GDS or other connected channel.
- Tickets flow into IARIssued tickets, exchanges, refunds and service fees appear in IAR the day after issue, where the agency can review, correct or void them within the allowed window.
- Agency authorises the reportAfter the sales week closes, the agency checks and authorises its weekly sales report in IAR by the Tuesday deadline.
- ARC drafts the net amountARC draws the authorised net remittance from the agency's bank account on its published schedule after the period ending date.
- Airlines receive settlementARC pays each airline its share and delivers settled transaction data for revenue accounting and audit, including any debit memos raised against agencies.
ARC in practice
Illustrative example: a corporate travel agency in Chicago issues 300 tickets across six airlines during one sales week. On the following Tuesday its accounting team reviews the totals in IAR, voids one duplicate ticket that was caught in time, and authorises the report. ARC then drafts a single net amount and splits it between the six carriers.
Schedules can change. During the early weeks of the COVID-19 pandemic in 2020, ARC moved its weekly draft and disbursement from five days after the sales week closed to ten days after, starting with the period ending 29 March 2020, to ease cash pressure on agencies. In 2024 ARC also announced that settled data would reach airlines up to two days faster from 13 January 2025, paired with the earlier report deadline.
Who uses it
Advantages and limitations
Advantages
- One weekly report and one payment cover all participating airlines.
- A fixed authorisation deadline and draft schedule make cash flow predictable for agency finance teams.
- Standard settlement data helps airlines audit agency sales and raise or resolve memos consistently.
- ARC's data on agency sales gives the industry a regular benchmark for US indirect air distribution.
Limitations
- ARC only covers agencies based in the US, so global agencies also need BSP accreditation in other markets.
- Missing the Tuesday authorisation deadline or a failed bank draft can lead to penalties or suspension.
- Accreditation brings financial and compliance requirements that may be costly for very small agencies.
- Sales made directly with airlines are outside ARC, so its data only shows the agency channel.
Frequently asked questions about ARC
What is the difference between ARC and BSP?
Both settle travel agency airline sales, but ARC serves agencies in the United States while IATA's BSP serves accredited agencies in most other countries. They have separate accreditation, rules and portals: ARC uses IAR and a weekly cycle, while BSP markets use BSPlink and remittance periods that vary from weekly to twice monthly.
When is the ARC weekly sales report due?
Since 13 January 2025, US agencies must authorise their weekly sales report in IAR by 1:59 p.m. Eastern time each Tuesday, except in weeks with a Monday or Tuesday holiday when ARC publishes an alternative date. Before that change the deadline ran later in the day.
Who controls Airlines Reporting Corporation?
ARC is governed by airlines. Its published board of directors includes executives from Delta, United, American, Southwest, Alaska, JetBlue, Air Canada, Lufthansa and Air France, alongside ARC's chair and chief executive. Travel agencies take part as accredited participants rather than as members of the board.
How much does ARC settle each year?
ARC says it processes more than US$100 billion in US agency air sales each year. For calendar year 2025 it reported US$100.4 billion in agency air ticket sales, the highest total it has recorded, covering 292.9 million passenger trips sold through US agency locations and online agencies.
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See the SaaS platformSources and further reading
- ARC — ARC's 40-year legacy ready for 2025
- ARC — Annual U.S. travel agency air ticket sales surpass $100 billion (2025 results)
- ARC — Interactive Agent Reporting (IAR)
- ARC — Leadership and governance
- Travel Market Report — ARC to move up weekly sales report authorization deadline (June 2024)
- ARC — Settlement schedule changes now in effect (2020)