Blocked funds threaten market connectivity
The airline industry’s blocked funds have increased by 47% to USD 2.27 billion in April 2023 from USD 1.55 billion in April 2022.
Willie Walsh, director general of the International Air Transport Association (Iata): "Airlines cannot continue to offer services in markets where they are unable to repatriate the revenues arising from their commercial activities in those markets."
The organisation urges governments to abide by international agreements and treaty obligations to enable airlines to repatriate these funds arising from the sale of tickets, cargo space, and other activities.
The following five countries account for 68% of blocked funds: Nigeria (USD 812.2 million), Bangladesh (USD 214.1 million), Algeria (USD 196.3 million), Pakistan (USD 188.2 million), and Lebanon (USD 141.2 million). (ah)