According to the IATA, $1.7 billion in aviation funds were blocked from repatriation by governments as of the end of October 2024.
The body noted an improvement in the blocked funds when compared to the figures in April 2024 which stood at $1.8 billion.
Regional debtors
The issue of blocked airline funds continues to be a critical concern, particularly for countries in Africa and South Asia.
“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 and XOF zones and Mozambique.” the report noted.
The XAF zone includes Cameroon, Central African Republic, Chad, Republic of the Congo, Equatorial Guinea, and Gabon while the XOF zone includes Benin, Burkina Faso, Ivory Coast, Guinea-Bissau, Mali, Niger, Senegal, and Togo.
Nigeria exits debtor’s list
Nigeria has officially been removed from the list of countries with blocked aviation funds following the government’s intensified efforts to settle outstanding debts owed to foreign airlines.
In January 2024, the Central Bank of Nigeria (CBN) announced it had cleared the backlog of foreign exchange (forex) obligations to these airlines.
The total amount settled reached around $800 million, highlighting Nigeria’s dedication to addressing forex challenges and restoring confidence in the aviation sector.
IATA responds
Willie Walsh, IATA’s Director General, called the situation a frustrating “game of whack-a-mole” and urged governments to remove barriers to airline revenue repatriation under international agreements.
“No country wants to lose aviation connectivity, which drives economic prosperity.
“But if airlines cannot repatriate their revenues, they cannot be expected to provide a service. Economies will suffer if connectivity collapses.”
“So, it is in everyone’s interest, including governments, to ensure that airlines can repatriate their funds smoothly,” Walsh added.
The table below shows the countries/regions with blocked aviation funds and how long the funds have been held;
|
S/N |
Country | Amount ($ Million) | Months withheld |
|---|---|---|---|
|
1 |
Pakistan |
$311 |
48 |
|
2 |
XAF Zone |
$235 |
60 |
|
3 |
Bangladesh |
$196 |
47 |
|
4 |
Algeria |
$193 |
24 |
|
5 |
Lebanon |
$142 |
60 |
|
6 |
Mozambique |
$127 |
47 |
|
7 |
Angola |
$80 |
36 |
|
8 |
Eritrea |
$75 |
96 |
|
9 |
XOF Zone |
$73 |
12 |
The nine regions listed in the table account for 83% of the total blocked aviation funds.
About $1 billion of airline money blocked from repatriation is in African countries which is about 59% of the global tally.
The IATA notes significant reductions in blocked funds in the last six months in Algeria ($193 million from $286 million April) and Ethiopia ($43 million from $149 million in April).
At the same time, XAF Zone (+$84 million), Mozambique (+$84 million) and XOF Zone (+$73 million) contributed to the largest increases.
