NOTE: UPDATED LISTING of Paypal Airlines for 2011 go here: Airlines Accepting Paypal 2011

A few readers have asked which airlines are accepting Paypal as a form of payment for buying air tickets. In Europe there is currently only one airline: Monarch Airlines which flies scheduled and charter services around the Med. They are quite well regarded in the industry.

In the US Paypal is more widely used and the following airlines accept it:

Northwest, Southwest, Midwest, Air Tran, US Airways, Delta and Jet Blue.

For Europeans you can buy KLM flights on partner Northwest using Paypal.

In Australia, Air Asia X accepts payment by Paypal – it flies from Gold Coast and Perth to Kuala Lumpur. It will fly from KL to London Stansted from 2009.

Also note that there are occasional “cashback” offers available through Paypal which might get you a small discount off your flight purchase.

You can also invest in the Ultimate Airfares & Upgrades Guide using Paypal.

UPDATE: Airlines Accepting Paypal 2011