IATA warns that IATA blocked airline funds worth billions are straining airlines, threatening global connectivity and economic growth
The International Air Transport Association, through its Senior Vice President for External Affairs, Thomas Reynaert, has warned that international airlines are facing mounting financial pressure as billions of dollars in ticket revenues remain trapped in various countries due to foreign exchange restrictions.
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In an article published on Monday, Thomas Reynaert said the issue of blocked funds poses a serious and growing threat to global air connectivity and broader economic growth.
The International Air Transport Association defines blocked funds as revenues earned by international airlines in local currencies that cannot be repatriated into US dollars because of government imposed currency controls or foreign exchange shortages.
Despite airlines selling tickets and operating flights, Thomas Reynaert said millions of dollars in revenue remain inaccessible for extended periods, creating what the industry views as a critical operational risk.
Thomas Reynaert explained that while airlines generate income across multiple markets, their largest expenses, including aircraft leasing, maintenance, fuel and personnel costs, are largely centralised at their home bases and paid in US dollars.
According to the International Air Transport Association official, international air services agreements typically guarantee airlines the right to repatriate earnings, enabling them to meet financial obligations and maintain safe and reliable operations.
However, Thomas Reynaert said some governments fail to honour these commitments by restricting access to foreign exchange or limiting currency outflows, placing airlines in a precarious position.
“That puts airlines in a very difficult position. It is hard to sustain operations if revenues earned cannot be used to pay the bills,” Thomas Reynaert said.
As of October 2025, airlines globally were holding an estimated USD 1.2 billion in blocked funds, the International Air Transport Association said, underscoring that timely repatriation is vital for meeting dollar denominated obligations.
Beyond immediate cash flow constraints, Thomas Reynaert noted that blocked funds expose airlines to currency depreciation, higher borrowing costs and reduced capacity to invest in fleet upgrades, route expansion and sustainability initiatives.
He described this knock on effect as a connectivity risk premium, warning that airlines often respond by cutting flight frequencies, raising fares or suspending routes altogether.
Nigeria was cited as a stark example.
At one point, blocked airline funds in the country reached USD 850 million, a situation that drove economy class fares into the thousands of dollars and sharply limited access to air travel.
According to the International Air Transport Association, several airlines either suspended flights to Nigeria or significantly reduced services during that period, weakening international connectivity.
Thomas Reynaert stressed that the consequences extend well beyond the aviation sector, highlighting air transport’s powerful role in the global economy.
In 2023, aviation supported 86.5 million jobs worldwide and contributed USD 4.1 trillion to global GDP, representing 3.9 percent of total output, while carrying 33 percent of global trade by value.
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The International Air Transport Association said resolving the issue of IATA blocked airline funds is essential to preserving affordable air travel, sustaining global trade and protecting economic growth.
