info@worldairnews.co.za  | +27 11 465 7706

Connecting Skies • Bridging Continents

IATA REPORTS USD 1.2 BILLION IN BLOCKED AIRLINE FUNDS, MAJORITY HELD IN AFRICA AND THE MIDDLE EAST

IATA reports USD 1.2 billion in blocked airline funds as of October 2025, with 93% trapped in Africa and the Middle East, and urges governments to lift currency repatriation restrictions.

The International Air Transport Association (IATA) has raised renewed concern over the continued blocking of airline revenues by governments, reporting that USD 1.2 billion remains unrepatriated as of the end of October 2025. The update, issued from Geneva on 10 December 2025, shows only a marginal improvement of USD 100 million since April 2025. Notably, 93% of the total trapped funds are located in Africa and the Middle East (AME).

 

IATA is calling on governments to lift all restrictions preventing airlines from accessing revenue generated through ticket sales, cargo activities, and related services. These restrictions range from complex procedures and delayed approvals to shortages of foreign exchange or limitations imposed by central banks. The association emphasises that bilateral air service agreements guarantee the repatriation of funds and expects governments to honour these commitments.

 

“Airlines need reliable access to their revenues in U.S. dollars to keep operations running, pay their bills, and maintain vital air connectivity,” said Willie Walsh, IATA’s Director General. He stressed that airlines operate on low margins with high dollar-denominated costs and depend on the fulfilment of government commitments. “It is also in the interest of governments to foster the economic catalyst that airlines provide by connecting their economies globally. That’s why we urge governments to facilitate the efficient repatriation of airline funds and prioritise this in foreign exchange allocations, even when currency is in short supply.”

 

According to IATA, ten countries across Africa, the Middle East, and South Asia account for 89% of all blocked funds, totalling USD 1.08 billion. Algeria now tops the list with USD 307 million in trapped revenues, driven by a new approval requirement from the Ministry of Trade, which adds to the already extensive documentation procedures. The XAF Zone — comprising Cameroon, Central African Republic, Chad, Republic of the Congo, Equatorial Guinea, and Gabon — holds USD 179 million, with airlines still navigating lengthy validation processes despite submitting required documentation.

 

Lebanon follows with USD 138 million, while Mozambique (USD 91 million), Angola (USD 81 million), Eritrea (USD 78 million), Zimbabwe (USD 67 million), Ethiopia (USD 54 million), Pakistan (USD 54 million), and Bangladesh (USD 32 million) complete the list.

 

Across 26 countries in the AME region, blocked airline funds amount to USD 1.12 billion. Walsh noted that political and economic instability are key drivers of these currency restrictions. While recognising the difficulty of allocating foreign exchange during financially strained periods, he emphasised that the long-term economic benefits of aviation connectivity extend far beyond temporary fiscal relief.

 

To improve transparency, IATA has launched a dedicated web page providing quarterly updates and background information on the status of blocked funds.

SOURCE AND IMAGE: IATA

Share the Post:

RELATED POSTS