The total amount of airline funds blocked from repatriation globally has decreased by 28% to $1.8 billion as of April 2024. This reduction was driven largely by a significant clearance of blocked funds in Nigeria.
However, Ethiopia continues to face challenges, owing $149 million in blocked funds. This represents a significant portion of the $1.6 billion in blocked funds that is concentrated in just 8 countries, which make up 87% of the total.
IATA has urged governments to remove barriers to airlines repatriating their revenues, noting that this is guaranteed under bilateral agreements and is critical for airlines to maintain economically vital air connectivity. The organization commended the efforts of the new Nigerian government in clearing 98% of the previously blocked $850 million, while calling on Ethiopia and other countries to urgently address the remaining blocked funds.
The devaluation of local currencies like the Egyptian Pound and Nigerian Naira has also adversely affected airlines, even as progress is made in clearing the blocked funds. IATA stressed that with airline margins already thin, the inability to repatriate revenues threatens the sustainability of aviation services.
Overall, the report shows a positive trend in reducing blocked funds globally, but significant challenges remain for countries like Ethiopia to fully comply with treaty obligations and allow airlines access to their rightfully earned revenues.
