The airline industry has seen blocked funds rise by nearly 50% in the past 12 months, posing an increasing risk to connectivity, according to the International Air Transport Association (IATA).
Outlining the latest data published on June 4, the airline association cited some $2.27 billion of blocked funds in April 2023, which represents a 47% rise from April 2022.
Meanwhile, Bangladesh currently holds the second highest amount of airline funds blocked for repatriation ($214.1 million).
In June 4, IATA in a statement warned that rapidly rising blocked fund levels threaten airline connectivity in the affected markets.
The industry's blocked funds have increased by 47% to $2.27 billion in April 2023 from $1.55 billion in April 2022 globally.
The top five countries account for 68% of the blocked funds. These are Nigeria with $812.2 million, Bangladesh with $214.1 million, Algeria $196.3 million, Pakistan $188.2 million, and Lebanon $141.2 million.
Willie Walsh, director general of IATA, said: “Governments need to work with industry to resolve this situation so airlines can continue providing the connectivity vital to driving economic activity and job creation.
“Airlines cannot continue to offer services in markets where they cannot repatriate the revenues arising from their commercial activities in those markets,” he added.
IATA urged governments to abide by international agreements and treaty obligations to enable airlines to repatriate these funds from selling tickets, cargo space, and other activities.
In August 2022, Dubai's Emirates Airlines cut all flights to Nigeria, the country with the highest amount of blocked funds, because the Nigerian government did not allow the carrier to withdraw their money from the Nigerian bank account and change it into convertible currency to wire it back to Dubai.
