The International Air Transport Association (IATA) has warned that rapidly growing levels of blocked funds pose a danger to airline connectivity in impacted areas.
The industry's frozen funds climbed by 47% in April 2023 to $2.27 billion from $1.55 billion in April 2022. "Airlines cannot continue to provide services in markets where they are unable to repatriate revenues generated by their commercial activities."
"Governments must collaborate with industry to resolve this situation so that airlines can continue to provide the connectivity that is critical to driving economic activity and job creation," said IATA Director General Willie Walsh.
The top five countries are responsible for 68.0% of all blocked funds. These are as follows:
- Nigeria ($812.2 million)
- Bangladesh ($214.1 million)
- Algeria ($196.3 million)
- Pakistan ($188.2 million)
- Lebanon ($141.2 million)
IATA asked governments to follow international agreements and treaty responsibilities in order for airlines to repatriate revenues earned from ticket sales, cargo space, and other operations.