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$1.3b airlines’ funds trapped in Angola, Algeria others, says IATA
The International Air Transport Association (IATA), yesterday said airline funds blocked from repatriation by governments as of end April 2025 stood at $1.3 billion.
Nigeria is not listed among countries involved in the practice of holding funds from ticket sales.
Ten countries account for 80 per cent of the total blocked funds, amounting to $1.03 billion.
The countries include Mozambique-$205million, Algeria-$178million, Lebanon-$142million, Bangladesh-$92million, Angola-$84million, Pakistan-$83million, Eritrea-$76million, Zimbabwe-$68million, Ethiopia $44million as well as Cameroon, Central African Republic, Chad, Congo, Equatorial Guinea, and Gabon.
Pakistan and Bangladesh, previously in the top five blocked funds countries, have made notable progress in clearing their backlog to $83 million and $92 million, respectively – from $311 million and $196 million in October 2024, respectively.
Mozambique has 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 region accounts for 85 per cent of total blocked funds, at $1.1 billion as of end April 2025.
The most significant improvement was noted in Bolivia, fully clearing its backlog that stood at $42 million at the end of October 2024.
The trade association of global airlines noted that though the figure is a significant amount, it is , however, an improvement of 25 per cent compared with the $1.7 billion reported for October 2024.
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,” IATA’s Director-General, Willie Walsh.
