International airlines are facing mounting financial pressure as billions of dollars in ticket revenues remain trapped in various countries due to foreign exchange restrictions, the International Air Transport Association (IATA) warned on Wednesday.
In a commentary, Thomas Reynaert, IATA’s Senior Vice President for External Affairs, said the issue of blocked funds poses a “serious risk” to global air connectivity and economic growth.
“Imagine running a business where you sell your products in certain markets, but access to your revenue is not guaranteed. Would you keep operating there? For many airlines, this isn’t hypothetical; it’s reality,” Reynaert said.
Blocked funds refer to revenues earned by international carriers in local currencies that cannot be repatriated into U.S. dollars because of government-imposed currency controls or foreign exchange shortages. While airlines generate revenue across multiple countries, their major expenses—aircraft leases, maintenance, fuel, and personnel—are typically denominated in U.S. dollars.
“To make the system work, countries that sign air services agreements agree that airlines should be able to repatriate the funds earned in those countries,” Reynaert explained. “This allows airlines to pay their bills and maintain safe and reliable operations.”
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However, some nations restrict access to foreign exchange or limit currency outflows, creating operational challenges. “That puts airlines in a very difficult position: it’s hard to sustain operations if you can’t use the revenues you’ve earned to pay the bills,” Reynaert said.
According to IATA, as of October 2025, airlines globally had roughly $1.2 billion in blocked funds. Delays in repatriation expose carriers to currency depreciation, higher borrowing costs, and reduced ability to invest in fleet upgrades, route expansion, and sustainability initiatives.
Reynaert described the phenomenon as a “connectivity risk premium,” noting that airlines often respond by reducing flight frequencies, raising fares, or suspending routes, which can make affected countries less attractive to serve.
“Nigeria is a case in point. At one stage, blocked funds reached $850 million. Economy fares surged, limiting access to and from Nigeria. Some airlines suspended flights, while others reduced frequencies or restricted ticket sales,” he said.
The IATA executive said blocked funds could also jeopardise safety and service reliability, as carriers may struggle to pay for critical maintenance and other operational costs.
Air transport supports the global economy by enabling trade, tourism, and business connectivity. IATA estimates that one in four international jobs and $4.7 trillion in global GDP are linked to aviation.
Reynaert urged governments to honour currency repatriation commitments and expedite solutions to unblock trapped revenues. He stressed that timely access to earned funds is essential for the stability of the sector and for sustaining international air connectivity.
“Without access to these funds, airlines are forced to make difficult choices that can disrupt routes, raise fares, and reduce connectivity, ultimately affecting economies and consumers,” he said.
IATA said it continues to work with governments and industry stakeholders to address blocked fund issues and promote transparent, reliable financial and regulatory frameworks for global aviation.
