The aviation industry is facing a significant financial challenge: billions of dollars in revenue generated by airlines through ticket sales and other services are being blocked by governments around the world.
According to the International Air Transport Association (IATA), approximately $2024 billion was blocked for repatriation by the end of October 1,7. Although this represents a decrease compared to the $1,8 billion in April of the same year, the problem remains urgent. Countries such as Pakistan, Bangladesh and various African states are particularly affected. This situation not only endangers the financial stability of airlines, but also the economic connectivity of the affected regions.
The causes of the problem
The blocking of funds is usually due to administrative and regulatory obstacles, often linked to foreign currency shortages or political measures. In Pakistan, which tops the list of blocked amounts with US$311 million, complicated tax and audit processes delay repatriation.
The situation is similar in Bangladesh, where the blocked amount, despite a decrease, still stands at 196 million US dollars. In African countries such as Mozambique and in the XAF and XOF currency zones, the situation has recently worsened, putting pressure on the region's already fragile infrastructure.
The economic consequences
The blocking of funds has far-reaching consequences for airlines and local economies. According to Willie Walsh, Director General of IATA, airlines cannot maintain services in the long term under these circumstances.
The loss of air connections threatens trade, tourism and human mobility. Developing countries in particular, which rely heavily on international connectivity, could suffer significant economic damage.
Regional characteristics and measures
Almost 60% of the total blocked funds are located in African countries. While there has been progress in countries such as Ethiopia and Algeria, where the amounts of blocked funds have been significantly reduced, the opposite trend is evident in other regions. Bolivia is a new addition, where currency fluctuations and a lack of dollar reserves have blocked 42 million US dollars.
IATA is calling on governments to step up their efforts to comply with international agreements and remove obstacles to the repatriation of funds. In countries such as Venezuela, where $2016 billion has been blocked since 3,8, experience shows that political negotiations and international pressure are necessary to achieve solutions.
The blockage of airline funds is more than a financial problem - it threatens global connectivity and economic progress. It is in the interest of the international community to create effective mechanisms to enable the repatriation of these funds and to protect the aviation industry as the engine of the global economy.
and 