IATA: $1.3 Billion in Airline Revenues Trapped – 80% of Blocked Funds Held by 10 Countries
IATA: $1.3 Billion in Airline Revenues Trapped – 80% of Blocked Funds Held by 10 Countries
  1. News
  2. Aviation News
  3. IATA: $1.3 Billion in Airline Revenues Trapped – 80% of Blocked Funds Held by 10 Countries

IATA: $1.3 Billion in Airline Revenues Trapped – 80% of Blocked Funds Held by 10 Countries

The International Air Transport Association (IATA) has announced that as of the end of April 2025, governments around the world are blocking a total of $1.3 billion in airline revenues from being repatriated. This situation threatens the ability of airlines to sustain operations and puts the stability of global connectivity at risk.

While this figure remains high, it represents a 25% improvement compared to the $1.7 billion reported in October 2024.

Clear Message from IATA: Honour International Agreements

In a statement on the issue, IATA Director General Willie Walsh emphasised:

“Airlines must be able to repatriate revenues in accordance with international agreements. Blocking or delaying access to these funds violates bilateral agreements and increases currency risk. Reliable access to these revenues is vital, especially since airlines operate on thin profit margins. Governments must recognise that blocking airline funds also disrupts international connectivity.”

80% of Blocked Funds Held by Just 10 Countries

According to IATA data, 80% of the total $1.3 billion in blocked funds is held by just 10 countries. The list of countries and the amounts involved are as follows:

Country Blocked Amount (Million USD)
Mozambique 205
XAF Region* 191
Algeria 178
Lebanon 142
Bangladesh 92
Angola 84
Pakistan 83
Eritrea 76
Zimbabwe 68
Ethiopia 44

* XAF Region includes Cameroon, Central African Republic, Chad, Republic of the Congo, Equatorial Guinea, and Gabon.

Africa and the Middle East: The Most Critical Region

A staggering 85% of all blocked funds are concentrated in the Africa and Middle East (AME) region. Mozambique now tops the list with $205 million. The XAF Region and Algeria are also prominent among countries withholding significant funds.

Positive Developments in Some Countries

Some countries have made encouraging progress in reducing blocked funds:

These positive examples highlight the importance of constructive dialogue between governments and airlines.

IATA’s Call to Governments: Don’t Jeopardise Global Mobility

IATA stresses that governments must honour their international commitments to ensure airlines’ financial sustainability and the continuity of global connectivity. The free flow of airline revenues not only supports the aviation sector but also has a direct impact on tourism, trade, and overall economic growth.

IATA: $1.3 Billion in Airline Revenues Trapped – 80% of Blocked Funds Held by 10 Countries
Comment

Your email address will not be published. Required fields are marked *

Follow Us