Governments in Africa and the Middle East are holding USD 1.2 billion in airline revenues that carriers are unable to repatriate, according to the International Air Transport Association (IATA). The figure, reported at the end of October 2025, represents a modest improvement of USD 100 million since April but underscores persistent challenges in the region’s aviation sector.
Airlines say the restrictions limit their ability to access funds earned from ticket sales, cargo, and other operations in U.S. dollars, affecting operational stability and regional connectivity.
Blocked funds represent airline revenues earned in a specific country that cannot be repatriated in U.S. dollars due to foreign exchange controls, currency shortages, or regulatory barriers. These revenues stem from ticket sales, cargo services, and other commercial operations, but remain trapped in the country of sale, sometimes for extended periods.
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While airlines may initially collect funds in local currencies, timely conversion and repatriation in dollars is essential to cover dollar-denominated costs such as aircraft leases, fuel, maintenance, and staff salaries. Delays or denials not only violate bilateral agreements and international treaties but also expose airlines to exchange rate fluctuations, operational disruptions, and potential financial losses.
Persistent issues with blocked funds can force carriers to reduce services or suspend operations, raising airfare, affecting tourism and trade, and discouraging investment in markets perceived as high risk.
IATA’s analysis shows that 93 percent of the total blocked funds are located in Africa and the Middle East. Ten countries alone account for 89 percent of the total, including Algeria with USD 307 million, the XAF Zone at USD 179 million, Lebanon at USD 138 million, Mozambique with USD 91 million, and Angola at USD 81 million. Eritrea, Zimbabwe, Ethiopia, Pakistan, and Bangladesh complete the top ten.
In Algeria, the Ministry of Trade has introduced new approval requirements that add to the administrative burden for airlines, while in the XAF Zone, multi-step validation processes have slowed fund clearance despite submission of required documentation.
Airlines operate on narrow margins, with costs such as fuel, aircraft leases, and maintenance largely denominated in U.S. dollars. IATA’s Director General, Willie Walsh, emphasized that delays in accessing revenues directly affect airline operations.
“Airlines need reliable access to their revenues in U.S. dollars to keep operations running, pay their bills, and maintain vital air connectivity,” Walsh said, noting that bilateral air service agreements obligate governments to allow unfettered repatriation of funds.
The economic impact of blocked funds extends beyond the airlines themselves. Aviation is a key driver of employment, tourism, and trade across the continent. In Africa, the sector supports roughly 8 million jobs and generates around USD 169 billion annually. When airlines cannot access funds, they face difficulties in servicing leases, paying suppliers, and maintaining flight schedules. This can result in higher ticket costs, reduced flight frequency, and disruptions to tourism and cargo movement, particularly in countries where air connectivity is essential for trade or travel.
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Political and economic factors underpin the restrictions, IATA says. Governments facing limited foreign exchange reserves impose currency controls, complicated approval procedures, or delays in processing applications. While these measures can offer short-term financial relief, airlines argue that they undermine operational efficiency and, in some cases, the broader economic benefits of air transport.
In Mozambique and Zimbabwe, carriers report similar challenges where exchange controls limit access to revenue earned in foreign currency, affecting their ability to meet international obligations.
In response, IATA has launched a dedicated platform to provide transparency on blocked funds, offering quarterly updates and detailed reporting on the status of payments. The association has called on governments to simplify procedures, honor treaty commitments, and prioritize the allocation of foreign exchange to airlines.
The issue highlights a practical challenge for African and Middle Eastern economies that rely on aviation to facilitate commerce, tourism, and regional connectivity. For airlines, timely access to earned revenue is not simply a financial concern; it is essential to sustaining flight operations, maintaining networks, and supporting employment in connected sectors.
The USD 1.2 billion in blocked funds, as of October 2025, underscores ongoing friction between fiscal policy and operational requirements in the aviation sector.
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