The International Air Transport Association (IATA) has raised concerns over the escalating levels of blocked funds, posing a threat to airline connectivity in affected markets.
The total amount of industry’s blocked funds has surged by 47% to reach $2.27 billion in April 2023, compared to $1.55 billion in April 2022. Willie Walsh, the Director General/CEO of IATA, highlighted this issue during the 79th IATA Annual General Meeting (AGM) and World Air Transport Summit, which commenced recently.
Walsh emphasized the criticality of resolving the situation as airlines cannot sustainably operate in markets where they face challenges repatriating revenues generated from their commercial activities.
He called for collaboration between governments and the industry to find solutions that ensure airlines can continue providing vital connectivity, which is instrumental in driving economic growth and job creation.
In an emailed statement to our correspondent, IATA listed the top five countries accounting for 68.0% of blocked funds, with Nigeria leading at $812.2 million.
Other countries include Bangladesh ($214.1 million), Algeria ($196.3 million), Pakistan ($188.2 million), and Lebanon ($141.2 million). IATA urged governments to honor international agreements and treaty obligations, enabling airlines to repatriate funds derived from ticket sales, cargo space, and other operational activities.
The resolution of these blocked funds issues is crucial for maintaining a healthy aviation sector, ensuring sustainable connectivity, and supporting economic development in affected regions.
