- The International Air Transport Association says airlines’ trapped funds dropped to $1.7 billion in October
- IATA’s report shows that Nigeria is no longer on the list of countries with trapped airlines’ funds
- Nine countries are still blocking 83 per cent of airlines’ funds
Airlines’ trapped funds globally have dropped to $1.7 billion as of October from the $1.8 billion reported in April 2024.
The International Air Transport Association (IATA) stated this in a new report released on Monday, December 9, adding that Nigeria has exited the list of countries blocking the repatriation of airline funds.
The new report shows that the Nigerian government has resolved the issue of airline revenue backlogs, allowing international carriers to access and transfer their funds back to their home countries.
Recall that in June this year, the IATA confirmed that the Central Bank of Nigeria (CBN) cleared $831 million of foreign airlines’ trapped funds out of a total of $850 million.
IATA, which represents international airlines, stated that the remaining $19 million is awaiting CBN’s verification of outstanding claims filed by commercial banks.
Nine countries still blocking $1.43 billion airlines’ funds
In the report, IATA stated that as of the end of October 2024, nine countries are still blocking 83 per cent of the airlines’ funds, which amounts to $1.43 billion.
It said the countries are Pakistan, XAF Zone, Bangladesh, Algeria, Lebanon, Mozambique, Angola, Eritrea, and XOF Zone.
Willie Walsh, IATA’s Director-General, condemned the blocking of airlines’ funds, noting that governments must remove barriers that impede the repatriation of airlines’ funds.
Walsh said, “Over the last six months, we have seen significant reductions in blocked funds in Pakistan, Bangladesh, Algeria, and Ethiopia. At the same time, amounts are rising in the XAF/XOF Zones and Mozambique.
“Bolivia has also emerged as a problem, where repatriating sales revenues is becoming increasingly difficult and unsustainable for airlines. This unfortunate game of ‘whack-a-mole’ is unacceptable.
“Governments must remove all barriers for airlines to repatriate their revenues from ticket sales and other activities by international agreements and treaty obligations.
“No country wants to lose aviation connectivity, which drives economic prosperity. But if airlines cannot repatriate their revenues, they cannot be expected to provide a service.
“Economies will suffer if connectivity collapses. So, it is in everyone’s interest, including governments, to ensure that airlines can repatriate their funds smoothly.”
Breakdown of trapped funds by country
A breakdown of the trapped funds by country shows that Pakistan still tops the list of countries with blocked funds at $311 million for 48 months, an improvement from the $411 million recorded in April 2024.
Pakistan is followed by XAF Zone with $235 million for 60 months; Bangladesh has $196 million for 47 months from $320 million in April, while Algeria owes $193 million for 24 months from $286 million in April.
Lebanon has $142 million for 60 months; Mozambique has $127 million for 47 months; Angola has $80 million for 36 months; Eritrea has $75 million for 96 months; and XOF Zone has $73 million for 12 months.
59 per cent of funds trapped by African countries
The report also noted that about $1 billion, which represents 59 per cent of the total $1.7 billion trapped funds, is in African countries.
It stated that while there have been significant decreases in the last six months, some countries in the continent have contributed to the largest increases.
IATA stated, “About $1 billion of airline money blocked from repatriation is in African countries. That is about 59 per cent of the global tally.
“Over the last six months, there were significant reductions in blocked funds in Algeria ($193 million from $286 million in April) and Ethiopia ($43 million from $149 million in April).
“At the same time, XAF Zone (+$84 million), Mozambique (+$84 million) and XOF Zone (+$73 million) contributed to the largest increases.”
NCAA imposes fines on airlines over delayed passengers’ luggage
Meanwhile, TheRadar reported that the Nigeria Civil Aviation Authority (NCAA) imposed fines of $170 and N10,000 on foreign and domestic airlines, respectively, over delayed passengers’ luggage.
The NCAA said the measure is in keeping with the implementation of the passenger bill of rights, which ensures that passengers are fully compensated whenever airlines compromise their standard of service, as contained in the passenger bill of rights in the Nigeria Civil Aviation Regulation (NCAR).
