Africa and Middle East Hold 93% of $1.12bn in Blocked Airline Funds
Airline funds worth USD1.12 billion remain blocked by governments across 26 countries, with Africa and the Middle East accounting for 93% of the total, according to the International Air Transport Association (IATA).
IATA said the ten worst-affected countries in Africa, the Middle East, and South Asia are responsible for 89% of all blocked airline revenues, totalling USD1.08 billion. Eight African countries alone account for 79% of the global total, or USD954 million. Algeria and the XAF Zone lead the list, with the latter covering Cameroon, the Central African Republic, Chad, the Republic of the Congo, Equatorial Guinea, and Gabon.
Algeria has emerged as the largest holder of blocked airline funds for the first time. Speaking at a media briefing on December 10, IATA regional vice president for Africa and the Middle East Kamil Al-Awadhi said the issue stems from complex and expanding documentation requirements imposed by the Ministry of Trade, rather than outright payment refusal. He noted that while Algeria has not defaulted on payments, administrative delays have significantly slowed the repatriation process.
Blocked funds in the XAF Zone have declined slightly since April 2025, but repatriation challenges persist. IATA urged the Bank of Central African States (BEAC) to simplify its internal three-step validation process and improve processing times to continue clearing the backlog of outstanding airline revenues.
The top ten countries by blocked airline funds are Algeria with USD307 million, the XAF Zone with USD179 million, Lebanon with USD138 million, Mozambique with USD91 million, Angola with USD81 million, Eritrea with USD78 million, Zimbabwe with USD67 million, Ethiopia and Pakistan with USD54 million each, and Bangladesh with USD32 million.
IATA called on governments to remove restrictions preventing airlines from accessing their US dollar revenues from passenger ticket and cargo sales, citing obligations under bilateral air service agreements and international treaties. The industry body said common barriers include burdensome or inconsistent approval procedures, prolonged delays, shortages of foreign exchange, and other controls imposed by governments or central banks.
IATA Director General Willie Walsh said reliable access to revenues is essential for airlines to sustain operations, meet financial obligations, and maintain air connectivity. He added that political and economic instability continue to drive currency restrictions across Africa and the Middle East, leaving large sums of airline funds trapped despite the broader economic and employment benefits of a functioning aviation sector.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com