IATA Reports $1.7 Billion in Airline Blocked Funds Blocked; African countries hold the highest share

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The International Air Transport Association (IATA) has reported that ‘$1.7 billion in airline funds are blocked from repatriation by governments as of the end of October 2024.” IATA sees this as “a small improvement compared to the $1.8 billion reported at the end of April.”

Willie Walsh, IATA’s Director General said: “Over the last six months, we have seen significant reductions in blocked funds in Pakistan, Bangladesh, Algeria and Ethiopia. At the same time, amounts are rising in the XAF[1]/XOF[2] zones and Mozambique. Bolivia has also emerged as a problem, where repatriating sales revenues is becoming increasingly difficult and unsustainable for airlines.”

Expressing his displeasure, the IATA DG said: “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.”

“No country wants to lose aviation connectivity, which drives economic prosperity. But if airlines cannot repatriate their revenues, they cannot be expected to provide a service. Economies will suffer if connectivity collapses. So, it is in everyone’s interest, including governments, to ensure that airlines can repatriate their funds smoothly,” said Walsh.

According to IATA, “Nine countries account for 83% of the airline industry’s blocked funds, amounting to $1.43 billion.”

 

Country Amount US$ Million Months Held
Pakistan $311 48
XAF Zone $235 60
Bangladesh $196 47
Algeria $193 24
Lebanon $142 60
Mozambique $127 47
Angola $80 36
Eritrea $75 96
XOF Zone $73 12

The breakdown of the blocked funds shows that African countries hold about USD783Million of the blocked funds with the XAF zone holding USD235Million. This is followed by Algeria at USD193Milllion and Mozambique with USD127Million.

[1] Cameroon, Central African Republic, Chad, Republic of the Congo, Equatorial Guinea, and Gabon

[2] Benin, Burkina Faso, Ivory Coast, Guinea-Bissau, Mali, Niger, Senegal, and Togo.

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