Blocked funds drop to $1.8 billion, says IATA

The International Air Transport Association (IATA) has reported a 28% decrease in the amount of airline funds blocked from repatriation by governments. The total blocked funds at the end of April stood at approximately $1.8 billion, a reduction of $708 million (28%) since December 2023.

The figures were released at the 80th IATA Annual General Meeting (AGM) and World Air Transport Summit, convening in Dubai from 2 to 4 June 2024. The event is being held in the UAE for the first time and hosted by Emirates Airline. Over 1,500 participants are expected to be in attendance, including industry leaders, government officials and media.

IATA reiterated the call for governments to remove all barriers to airlines repatriating their revenues from ticket sales and other activities in accordance with international agreements and treaty obligations.

“The reduction in blocked funds is a positive development. The remaining $1.8 billion, however, is significant and must be urgently addressed. The efficient repatriation of airline revenues is guaranteed in bilateral agreements. Even more importantly, it is a pre-requisite for airlines-who operate on thin margins-to be able to provide economically critical connectivity. No business can operate long-term without access to rightfully earned revenues,” said Willie Walsh, IATA’s Director General. The main driver of the reduction was a significant clearance of funds blocked in Nigeria. Egypt also approved the clearance of its significant accumulation of blocked funds.

WAM