After clearing about 98% of the airlines’ funds that were hitherto trapped, Nigeria was on Wednesday omitted from the list of countries with the largest airlines’ trapped funds.
Top on the list is Algeria with over $302 trapped funds out of the estimated $1.2 billion.
Nigeria, which featured prominently, is absent, having cleared 98 per cent of blocked airlines’ funds in 2024.
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Other countries on the list include Lebanon ($138 million), Mozambique ($91 million), Angola ($81 million), Zimbabwe ($67 million) and Ethiopia ($54 million).
International Air Transport Association, IATA, stated that out of total blocked funds reported, 93 per cent are trapped in Africa and Middle East.
IATA, however, called on governments to lift all restrictions on currency repatriation and allow airlines to access their revenues in dollars from ticket sales, cargo sales and other activities, as guaranteed in bilateral air service agreements and treaty obligations.
Speaking on the development, IATA’s Director General, Willie Walsh, said: “Airlines need reliable access to their revenues in U.S. dollars to keep operations running, pay their bills, and maintain vital air connectivity. Governments have committed to unfettered repatriation of funds in bilateral agreements. With low margins and significant dollar denominated costs, airlines depend on governments fulfilling that commitment.
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“It is also in the interest of governments to foster the economic catalyst that airlines provide by connecting their economies globally. That’s why we urge governments to facilitate the efficient repatriation of airline funds and prioritize this in foreign exchange allocations, even when currency is in short supply.”
