IATA reports $1.7 billion in airline funds still blocked by governments, Africa accounts for majority

The International Air Transport Association (IATA) reported that $1.7 billion in airline funds remain blocked by governments worldwide as of October 2024. This represents a slight improvement from $1.8 billion in April, with significant progress in Pakistan, Bangladesh, Algeria, and Ethiopia. However, challenges persist, particularly in African nations, which account for 59% of the global total ($1 billion).

Key countries with blocked funds include:

• Pakistan: $311M, reduced from $411M (audit and tax delays).
• Bangladesh: $196M, down from $320M (Central Bank issues).
• XAF Zone (Cameroon, Central African Republic, Chad, Republic of the Congo, Equatorial Guinea, and Gabon): $235M, up $84M.
• XOF Zone (Benin, Burkina Faso, Ivory Coast, Guinea-Bissau, Mali, Niger, Senegal, and Togo): $73M, newly increased by $73M.
• Mozambique: $127M, up $84M.

Nine countries represent 83% of the total, with prolonged holding periods—up to 96 months in Eritrea. Bolivia has also emerged as a new concern with $42 million in blocked funds.

IATA Director General Willie Walsh emphasised the risks of restricted funds on aviation connectivity, urging governments to prioritise compliance with international agreements to maintain critical economic and transportation links.