Progress and Setbacks

IATA Director General Willie Walsh acknowledged reductions in blocked funds in Pakistan, Bangladesh, Algeria, and Ethiopia over the past six months. However, other regions, including the XAF and XOF currency zones and Mozambique, have reported increasing amounts, while Bolivia has emerged as a new concern. Walsh expressed frustration, stating: “This unfortunate game of ‘whack-a-mole’ is unacceptable. Governments must remove all barriers for airlines to repatriate their revenues from ticket sales and other activities in accordance with international agreements and treaty obligations.”

Economic Impact

Walsh emphasised the broader economic risks of blocked funds, noting that aviation connectivity drives prosperity.

“If airlines cannot repatriate their revenues, they cannot be expected to provide a service. Economies will suffer if connectivity collapses. It is in everyone’s interest, including governments, to ensure smooth repatriation of funds.”

Key Offenders

Nine countries account for 83% of the blocked funds, totalling $1.43 billion. Pakistan leads with $311 million held for 48 months, despite a reduction from $411 million in April. Bangladesh follows at $196 million, with progress seen after Central Bank prioritisation of airline access to foreign exchange.

In Africa, approximately $1 billion in funds remain blocked, representing 59% of the global total. Notable increases occurred in the XAF Zone (+$84 million), Mozambique (+$84 million), and the XOF Zone (+$73 million), overshadowing reductions in Algeria and Ethiopia.

New Challenges

Bolivia has joined the list of problematic countries, with $42 million in airline funds now blocked due to foreign exchange shortages, particularly in US dollars.

Call for Action

IATA urges governments to fullfill their international treaty obligations to remove barriers to fund repatriation. Without immediate resolution, the sustainability of airline operations and economic connectivity in affected regions remains at risk.