The latest report from the International Air Transport Association (IATA) has highlighted a concerning trend in the aviation industry, with blocked airline funds in African countries reaching a total of USD 846 million. This amount is owed to international airlines operating in these regions, but due to government-imposed foreign exchange restrictions or delayed currency conversion, the funds remain inaccessible for repatriation.
Among the top debtors on the list, Mozambique stands out with a significant amount of $205 million withheld from airlines, marking an increase from $127 million reported in October 2024. The XAF Zone countries, including Cameroon, Central African Republic, Chad, Congo, Equatorial Guinea, and Gabon, collectively hold $191 million of the blocked aviation funds. Other notable countries on the list include Algeria, Lebanon, Bangladesh, Angola, Pakistan, Eritrea, Zimbabwe, and Ethiopia.
The inability of airlines to repatriate their earnings has led to financial pressure, resulting in operational cutbacks, reduced flight frequencies, and route suspensions. This, in turn, affects connectivity, tourism, and trade in the region. Stakeholders and industry leaders have expressed concerns about the prolonged inaccessibility of these funds, warning that it may destabilize the sector and deter future investment.
Despite these challenges, there have been signs of progress, with some countries making efforts to clear outstanding amounts and facilitate the repatriation of airline revenues. For example, Bolivia recently cleared its backlog of $42 million, while Nigeria successfully resolved its debt of $831 million owed to foreign airlines.
IATA Director General Willie Walsh has emphasized the importance of timely revenue repatriation for airlines to cover expenses and maintain operations. He highlighted the impact of delays and denials on bilateral agreements, exchange rate risks, and overall business sustainability. The global aviation community continues to urge governments to honor international agreements and address arrears to ensure the financial health of the industry.
The issue of blocked airline funds in African countries remains a significant challenge for airlines operating in the region, with implications for international connectivity, economic growth, and job sustainability. It is crucial for all stakeholders to work together to find solutions and ensure the smooth repatriation of funds to support the aviation sector’s recovery and long-term viability.
