This is as the Switzerland-based trade association of world airlines sounded a warning about the rising levels of blocked funds, which represents a threat to airline connectivity in affected markets.
According to IATA, the industry’s blocked funds have shot up by forty seven percent to two point two seven billion dollars in April 2023, compared to one point five five billion dollars in April 2022.
This means that airlines are increasingly unable to repatriate their commercial revenues from the affected markets, thereby making it challenging for them to continue providing the critical connectivity that drives economic activity and job creation worldwide.
IATA’s Director-General, Willie Walsh, urged governments to collaborate with industry players to address this unfolding crisis.
Recent estimates by IATA reveal that the top five countries account for a whopping sixty eight percent of blocked funds, comprising Nigeria, eight hundred and twelve point two million dollars, Bangladesh, two hundred and fourteen point one million dollars, Algeria, one hundred and ninety six point three million dollars, Pakistan, one hundred and eighty eight point two million dollars, and Lebanon, one hundred and forty one point two million dollars.
