The International Air Transport Association (IATA) reported that $1.3 billion in airline funds are blocked from repatriation by governments as of end April 2025, impacting operations in the aviation sector.
This amount is significant, although it is an improvement of 25% compared with the $1.7 billion reported for October 2024.
BLOCKED FUNDS IMPACT SUSTAINABILITY OF AVIATION SECTOR
IATA urged governments to remove all barriers preventing airlines from the timely repatriation of their revenues from ticket sales and other activities – in accordance with international agreements and treaty obligations.
“Ensuring the timely repatriation of revenues is vital for airlines to cover dollar-denominated expenses and maintain their operations. Delays and denials violate bilateral agreements and increase exchange rate risks. Reliable access to revenues is critical for any business—particularly airlines which operate on very thin margins. Economies and jobs rely on international connectivity. Governments must realize that it is a challenge for airlines to maintain connectivity when revenue repatriation is denied or delayed,” said Willie Walsh, IATA’s Director General.
COUNTRIES WITH MOST BLOCKED FUNDS
In fact, ten countries account for 80% of the total blocked funds, amounting to $1.03 billion.
The majority of these countries are indeed African countries.
Mozambique tops the list with 205 Million USD in blocked funds.
This is followed by the Central African Franc (XAF) Zone. The region includes several independent states. The countries are Cameroon, Central African Republic, Chad, Republic of the Congo, Equatorial Guinea and Gabon. These countries use a common currency. Unblocked funds from this zone come in at 191 million USD.
Next is Algeria, sitting on 178 Million USD, Lebanon with 142 million USD, Bangladesh with 92 million USD, Angola with 84 million USD and Pakistan with 83 million USD in blocked funds.
Countries at the bottom of the list include Eritrea with USD 76 million, Zimbabwe with USD 68 million and Ethiopia with USD 44 million.
Blocked funds is a significant hurdle to airline operations and thus poses a threat to the sustainability of airline routes.
This could threaten connectivity for passengers in parts of the world.
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