IATA Raises Alarm as USD 1.2bn Airline Revenues Remain Trapped Worldwide |
93% of all blocked airline funds stuck in Africa and the Middle East, with Algeria now the top offender
The International Air Transport Association (IATA) has revealed that USD 1.2 billion in airline revenues remain blocked from repatriation by governments as of the end of October 2025—posing a growing threat to airline operations and international air connectivity.
Although there has been a marginal improvement of USD 100 million since April 2025, IATA says the situation remains deeply concerning, with 93% of all blocked funds trapped in Africa and the Middle East (AME).
IATA is urging governments to urgently remove all restrictions preventing airlines from repatriating funds earned from ticket sales, cargo operations, and other activities—revenues protected under bilateral air service agreements.
“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. “With low margins and significant dollar-denominated costs, airlines depend on governments fulfilling their commitments.”
Ten Countries Account for 89% of All Blocked Funds
According to the association, ten countries—primarily in Africa, the Middle East, and South Asia—account for USD 1.08 billion of all unreleased airline revenues.
Largest blocks include:
- Algeria – USD 307m
- XAF Zone (Cameroon, CAR, Chad, Congo, Equatorial Guinea, Gabon) – USD 179m
- Lebanon – USD 138m
- Mozambique – USD 91m
- Angola – USD 81m
- Eritrea – USD 78m
- Zimbabwe – USD 67m
- Ethiopia – USD 54m
- Pakistan – USD 54m
- Bangladesh – USD 32m
For the first time, Algeria tops the global list of blocked-funds countries. A new approval requirement introduced by the Ministry of Trade has significantly worsened delays, adding to what IATA describes as already “burdensome” documentation processes.
The XAF Zone has seen a slight improvement from USD 191 million earlier this year, but airlines continue to face repeated delays due to a lengthy three-step internal validation process managed by the Bank of Central African States (BEAC).
AME Region Remains the Epicentre
The AME region continues to dominate the crisis, accounting for USD 1.12 billion in trapped airline funds across 26 countries.
“Political and economic instability are key drivers of currency restrictions across Africa and the Middle East,” Walsh added. “We recognize foreign exchange shortages are challenging, but the long-term economic benefits of aviation far outweigh short-term financial relief.”
IATA stressed that withholding airline revenues risks reducing flight frequencies, hampering tourism, driving up fares, and weakening economic growth—particularly for developing markets that rely heavily on air connectivity.
The association continues to engage governments and central banks, urging expedited approvals, removal of red-tape barriers, and adherence to international aviation agreements to restore confidence in affected markets.
IATA Raises Alarm as USD 1.2bn Airline Revenues Remain Trapped Worldwide | Send all enquiries and press releases to AviationGhana.info@gmail.com
