IATA: Blocked airline funds drop 28% since Dec-2023, situation 'severe' in Pakistan and Bangladesh

IATA reported (02-Jun-2024) the amount of airline funds blocked from repatriation by governments decreased 28% since Dec-2023 to reach approximately USD1.8 billion as of Apr-2024. The reduction was mainly driven by a "significant" clearance of funds in Nigeria. Egypt also approved the clearance of its "significant accumulation" of blocked funds. However, IATA noted that airlines were adversely affected by the devaluation of the Egyptian pound and the Nigerian naira. Details include:

• Nigeria's blocked funds peaked at USD850 million in Jun-2023 and 98% of these funds were cleared as of Apr-2024. USD19 million remains "due to the Central Bank's ongoing verification of outstanding forward claims filed by the commercial banks";
• IATA stated the blocked funds situation "has become severe" in Pakistan and Bangladesh. IATA director general Willie Walsh stated: "In Bangladesh, the solution is in the hands of the Central Bank, which must prioritise aviation's access to foreign exchange in line with international treaty obligations. The solution in Pakistan is finding efficient alternatives to the system of audit and tax exemption certificates, which cause long processing delays";
• The following countries account for 87% of blocked airline funds, amounting to USD1.6 billion:
  • Pakistan: USD411 million, held for 40 months;
  • Bangladesh: USD320 million, held for 40 months;
  • Algeria: USD286 million, held for 37 months;
  • Central African CFA franc zone (Cameroon, Central African Republic, Chad, Equatorial Guinea, Gabon and the Republic of the Congo): USD151 million, held for 50 months;
  • Ethiopia: USD149 million, held for 58 months;
  • Lebanon: USD129 million, held for 52 months;
  • Eritrea: USD75 million, held for 116 months;
  • Zimbabwe: USD69 million, held for 84 months.

IATA reiterated its call for governments to remove all barriers to airlines repatriating their revenues from ticket sales and other activities. [more - original PR] [more - CAPA Analysis]