The International Air Transport Association (IATA), in a recent report, has revealed that a number of countries are collectively responsible for a total of $1.3 billion in blocked airline funds.

• The IATA report indicated $1.3 billion is owed in blocked aviation funds globally.

• Twelve African nations account for 65% of these funds, significantly impacting airline operations.

• Mozambique is the highest debtor country, withholding $205 million from airlines.

The IATA report which listed fifteen nations, showed that twelve African countries account for about 65% ($846 million) of the total blocked airline funds currently withheld from repatriation and stands at $1.3 billion.

According to the IATA report, Asian and African countries collectively owe a total of $1.163 billion in blocked airline funds.

This figure includes the XAF Zone nations—primarily the countries within the Central African Economic and Monetary Community (CEMAC)—as well as other key African economies such as Mozambique, Algeria, Angola, Eritrea, Zimbabwe, and Ethiopia.

The blocked funds, which represent revenues earned by international airlines operating in these countries, remain inaccessible due to government-imposed foreign exchange restrictions or delayed currency conversion.

As a result, airlines face mounting financial pressure, often forcing them to scale back operations, reduce flight frequencies, or suspend routes altogether, decisions that ultimately hurt connectivity, tourism, and trade.

The continued inability of carriers to repatriate earnings raises serious concerns among stakeholders and industry leaders, who warn that prolonged inaccessibility may further destabilize the sector and deter future investment.

As negotiations continue, attention remains focused on African markets, where the majority of blocked funds are trapped, posing a serious threat to the financial health of the aviation industry both on the continent and globally.

Notably, Mozambique has risen to the top of the debtors list, withholding $205 million from airlines—an increase from $127 million reported in October 2024.

The XAF Zone which includes Cameroon, Central African Republic, Chad, Congo, Equatorial Guinea, and Gabon accounted for $191 million of the blocked aviation funds.

Despite the overall concerning trend, there have been notable signs of progress. Some countries previously listed among IATA's top debtors have made strides in clearing outstanding amounts and facilitating the repatriation of airline revenues.

IATA also highlighted a significant recent improvement in Bolivia, which has fully cleared its backlog of $42 million that was outstanding as of the end of October 2024.

Nigeria, once one of the largest contributors to blocked aviation funds, also stands out as a positive example of progress.

In June last year, IATA confirmed that Nigeria had cleared $831 million in trapped funds owed to foreign airlines.

Sustained debt, a challenge for airlines - IATA

IATA Director General Willie Walsh described the lingering blocked funds as a major challenge for airlines operating in affected regions.

He emphasized that economies and jobs depend on international connectivity, which becomes difficult to sustain when revenue repatriation is delayed or denied.

“Ensuring the timely repatriation of revenues is vital for airlines to cover dollar-denominated expenses and maintain their operations. Delays and denials violate bilateral agreements and increase exchange rate risks. Reliable access to revenues is critical for any business—particularly airlines which operate on very thin margins,” Walsh noted.

The issue continues to attract global attention, with IATA and other aviation bodies urging governments to honor international agreements and resolve arrears. (Business Insider Africa)