International Air Transport Association pushes for disbursement of $1.3 billion in revenue, currently restricted for airlines
Revamped Article:
Airline funds worth a staggering $1.3 billion remain locked up, as per the International Air Transport Association (IATA)'s declaration on June 2, 2025. A whopping 85% of this shocking sum is held by just 10 nations. IATA is insisting that these governments lift all restrictions and facilitate the return of these funds in accordance with international accords and treaty obligations.
These blocked funds stem from ticket sales, cargo services, and various commercial activities that airlines receive in the countries issuing the tickets or services. As per international agreements, governments should not withhold these payments.
While the figure represents an improvement from October 2024, when it stood at a whopping $1.7 billion, IATA has sounded the alarm about the crippling impact of these restrictions on the aviation industry.
In the press release, IATA's CEO, Willie Walsh, underscored the importance of "reliable access to revenues," stating that it's essential for any business, particularly airlines that function on razor-thin margins.
The Offenders
By April 2025, 85% of the blocked revenue was held by 15 countries: 12 in Africa and 3 in the Middle East and South Asia.
African countries leading the pack included Mozambique, which holds $205 million in blocked revenues, up from $127 million in October 2024, taking the top spot. Coming in next was Algeria with $178 million, followed closely by the XAF zone (which includes Cameroon, Central African Republic, Chad, Republic of Congo, Equatorial Guinea, and Gabon) with a hefty $101 million.
Rounding out the African nations with substantial blocked revenues were Angola, Eritrea, Zimbabwe, and Ethiopia, with $84 million, $76 million, $68 million, and $44 million respectively.
Three other countries, Lebanon, Bangladesh, and Pakistan, held $142 million, $92 million, and $83 million in blocked revenue respectively. amongst the top offenders. It's noteworthy that Bangladesh and Pakistan were among the top five in October 2024 but have since made partial repayments.
The Root of the Issue
In 2021, Bangladesh, Lebanon, Zimbabwe, and Nigeria accounted for over 60% of all blocked airline revenues, with Nigeria alone holding a staggering $800 million.
Since then, Nigeria has successfully tackled the issue, following a change of leadership at their central bank and implementing policies to liberalize the foreign exchange market and stabilize their currency (the naira). This cleared up much of their backlog.
At the time, IATA issued a similar warning, emphasizing the additional strain caused by the COVID-19 pandemic on airlines.
The Real Culprits
The reasons for the funds being blocked are manifold, but they're often linked to economic or political instability. Potential reasons range from currency shortages hindering conversion and transfer, to balance of payment crises, exchange rate restrictions, or even political leverage in trade or diplomatic disputes.
At present, the most prevalent issue seems to be strict exchange control measures, which prevent airlines from repatriating their earnings. Walsh has warned that these measures can lead to severe financial difficulties for airlines, as they violate bilateral agreements and increase exchange rate risks.
The Stakes
The withholding of revenue transfers may result in reduced flight frequencies, suspended routes, and increased ticket prices. In certain cases, pressure from industry stakeholders, diplomatic channels, or legal arbitration may be necessary, as with IATA's campaign.
According to Willie Walsh, IATA's Director General, "ensuring the timely repatriation of revenues is vital for airlines to cover dollar-denominated expenses and maintain operations." Economies and jobs rely on international connectivity, making it vital for governments to recognize the challenges faced by airlines in maintaining connectivity when revenue repatriation is denied or delayed.
- The eco-industry, particularly the aviation sector, is facing severe financial difficulties due to the withholding of funds by specific countries, as highlighted by IATA's CEO, Willie Walsh, who emphasized the importance of "reliable access to revenues" for airlines that operate on thin margins.
- The finance industry is significantly affected by the strict exchange control measures imposed by certain nations, as these measures prevent airlines from repatriating their earnings and lead to increased exchange rate risks, potentially causing reduced flight frequencies, suspended routes, and increased ticket prices, as outlined in IATA's campaign to facilitate the return of blocked revenues.
