KEY POINTS
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Algeria holds the largest share of blocked airline funds globally.
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Nigeria cleared 98 percent of its blocked funds in 2024.
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IATA stresses access to dollars is essential for airline operations and connectivity.
The International Air Transport Association (IATA) says that Algeria has the most frozen airline funds, with $302 million of the $1.2 billion total. Nigeria, which used to be at the top of these lists, has mostly rectified the problem and will release 98% of the airline cash it has been holding back in 2024.
Lebanon ($138 million), Mozambique ($91 million), Angola ($81 million), Zimbabwe ($67 million), and Ethiopia ($54 million) hold large sums of money that remain stuck. IATA reported that 93 percent of blocked airline money is in Africa and the Middle East. This illustrates how huge the situation is there.
The most banned airline money is in Africa
Willie Walsh, the Director General of IATA, said that governments need to make it simpler for airlines to collect their money back in U.S. dollars from ticket sales, cargo operations, and other activities. Usually, these rights are protected by bilateral air service agreements and treaty obligations.
“Airlines need to be able to count on getting their money in U.S. dollars so they can keep running, pay their bills, and keep vital air connections,” Walsh said. “Governments have promised that the money will be sent back without any problems.” Airlines rely on governments to maintain their promises because their profit margins are small and their costs are large in dollars.
Getting rid of restrictions is vital for bringing the globe together
Walsh stated that making it simpler for limited airline finances to move around is good for the airlines and the economy because it keeps crucial global linkages open. He said, “Governments should also support the economic boost that airlines give by connecting their economies around the world.”
People are anxious that holding onto money will affect airline operations, hike ticket prices, and limit network coverage, especially in countries where there isn’t enough foreign exchange.
This is when the IATA request comes in. The association urged the government to recover frozen airline funds immediately and allow airlines to continue operating without disruptions.
