The blocked funds relate to the amount due to transport companies at the end of October this year.
The funds, according to IATA, represent revenues generated from the sale of travel, transport services, and other activities in countries that do not repatriate these earnings in dollars to the airlines, despite this being stipulated in industry agreements and treaties.
The association notes that the governments and central banks of some countries impose “cumbersome or inconsistent” procedures on airlines for authorizing repatriation, delaying their approval.
The restrictions are also attributed to the scarcity or lack of foreign currency, it explains.
“Airlines depend on governments honoring this commitment,” underscores IATA’s Director-General, Willie Walsh, noting that the companies operate “with low margins and significant costs,” primarily in dollars.
The airline association specifies that in October, there was an improvement compared to April this year, with a reduction in the blocked amount by $191 million (€164 million).
IATA highlights that 93% of the retained funds are in 26 countries in Africa and the Middle East.
Algeria tops the list with $307 million (€264 million) blocked.
Lebanon is the Middle Eastern country with the most retained funds, $138 million, while Pakistan and Bangladesh are the only Asian countries with blocked airline revenues.
IATA represents about 360 airlines that account for 80% of the world’s air traffic.
