Why $1.2 Billion in Airline Funds Remain Trapped, IATA Urges Action

The International Air Transport Association (IATA) reported a massive $1.2 billion in airline funds are blocked. This revenue is trapped by governments as of the end of October 2025. This figure represents a marginal improvement of $100 million since April 2025, according to the association.

This ongoing issue severely impacts airline operations worldwide. Carriers cannot access revenues from ticket sales and cargo services. IATA is now calling on governments to lift all currency repatriation restrictions.

Africa and Middle East Crisis

The vast majority of these IATA blocked airline funds are concentrated in one region. A staggering 93% of the total is trapped in the Africa and Middle East (AME) region. This amounts to approximately $1.12 billion across 26 countries.

Algeria now holds the largest amount of $1.2 billion blocked funds. This is due to new, burdensome approval requirements from the Ministry of Trade. Other nations with significant blocked funds include the XAF Zone, Lebanon, Mozambique, and Angola. Political and economic instability often drives these currency restrictions.

Repatriation Challenges

Airline currency repatriation is crucial for daily operations. Airlines earn revenue in local currencies but must pay major expenses in US dollars. These dollar-denominated costs cover fuel, leasing, maintenance, and staff salaries.

Blocked funds are caused by several factors. These include foreign exchange shortages and regulatory barriers. Governments impose inconsistent procedures or delays for repatriation approval. Delays and denials violate international treaties and bilateral air service agreements.

Impact on Global Air Connectivity

IATA Director General Willie Walsh stressed the financial necessity of access to airline revenues US dollars. "Airlines need reliable access to their revenues in U.S. dollars to keep operations running, pay their bills, and maintain vital air connectivity," he said. Airlines operate on very thin margins, making this cash flow disruption critical.

Reduced connectivity is a major risk for affected markets. Persistent issues may force carriers to reduce service or suspend operations entirely. This directly impacts tourism, trade, and local jobs. For example, a major carrier like Emirates operating in the region faces this challenge. Furthermore, manufacturers like Boeing rely on airlines' financial health for future orders.

• Cash Flow: Blocked funds disrupt the ability to cover essential operational costs.
• Exchange Risk: The value of trapped funds can decrease due to fluctuating exchange rates.
• Investment: Countries with a history of blocking funds are viewed as high-risk.

Walsh urged governments to prioritize foreign exchange allocations for airlines. He noted that air transport acts as an aviation economic catalyst. Fulfilling the commitment to unfettered repatriation is in the government's own interest. For more updates on this and other commercial aviation news, visit the industry experts at flying.flights.