Africa, M-East Hold 85% of Airlines' Blocked Funds - IATA

By Dickson Omobola

The International Air Transport Association, IATA, has said $1.3 billion in airline funds were blocked from repatriation by governments as of end April 2025.

IATA said when compared with the $1.7 billion reported for October 2024, it resulted in an improvement of 25 per cent.

Mozambique, according to IATA, climbed up to the top of blocked funds countries, withholding $205 million from airlines, compared with $127 million in October 2024.

The Africa and Middle East, AME, region accounted for 85 per cent of total blocked funds at $1.1 billion as of end April 2025.

The 10 countries, which accounted for 80 per cent of the total blocked funds, amounting to $1.03 billion, included Mozambique $205m; XAF Zone $191m; Algeria $178m; Lebanon $142m; Bangladesh $92m; Angola $84m; Pakistan $83m; Eritrea $76m; Zimbabwe $68m; and Ethiopia $44m.

IATA urged governments to remove all barriers preventing airlines from the timely repatriation of their revenues from ticket sales and other activities in accordance international agreements and treaty obligations.

IATA's Director General, Willie Walsh, said: "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 realise that it is a challenge for airlines to maintain connectivity when revenue repatriation is denied or delayed."

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