The International Air Transport Association (IATA) yesterday warned that rapidly rising levels of blocked funds constitute a threat to 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.
IATA's Director General/CEO, Willie Walsh, disclosed this at the 79th IATA Annual General Meeting (AGM) and World Air Transport Summit, which kicked off yesterday.
He said, "Airlines cannot continue to offer services in markets where they are unable to repatriate the revenues arising from their commercial activities in those markets.
"Governments need to work with industry to resolve this situation so airlines can continue to provide the connectivity that is vital to driving economic activity and job creation."
"IATA, in an emailed statement to our correspondent yesterday, listed the top five countries which account for 68.0% of blocked funds with Nigeria leading with $812.2 million.
Others are Bangladesh ($214.1 million), Algeria ($196.3 million), Pakistan ($188.2 million) and Lebanon ($141.2 million)
IATA urged governments to abide by international agreements and treaty obligations to enable airlines to repatriate funds arising from the sale of tickets, cargo space, and other activities.
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