Ethiopia is among ten countries responsible for nearly 90 percent of airline revenues blocked worldwide, with international carriers unable to repatriate about US$54 million in foreign-currency earnings, according to a report released this month by the International Air Transport Association (IATA).
IATA said governments globally were blocking a total of US$1.2 billion in airline funds as of the end of October 2025, a marginal improvement of US$100 million compared with April. Despite the slight easing, the industry body warned that the problem remains acute in emerging markets facing persistent foreign-exchange shortages.
Africa and the Middle East account for the bulk of the restrictions, with 93 percent of the blocked funds concentrated in the two regions. According to the report, ten countries across Africa, the Middle East and South Asia together account for US$1.08 billion, or 89 percent, of the total amount airlines are unable to repatriate.
Ethiopia and Pakistan were each cited with US$54 million in blocked revenues, placing Ethiopia eighth on the list. Algeria recorded the largest amount at US$307 million, followed by the XAF franc zone a group of six Central and West African countries with US$179 million, and Lebanon with US$138 million, the report showed.
The blocked funds comprise revenues generated from ticket sales, cargo operations and other aviation-related services carried out by foreign airlines in the affected countries. Under bilateral air service agreements, governments are required to allow airlines to repatriate these earnings, typically in US dollars.
IATA said the failure to honour these commitments is increasingly being driven by foreign-currency shortages, lengthy approval processes and restrictive central bank policies. Such constraints, it warned, undermine airline confidence, disrupt route planning and can ultimately lead to reduced air connectivity.
The association has repeatedly urged governments to prioritise aviation revenue repatriation, arguing that blocking airline funds risks isolating economies, raising airfares and constraining trade and tourism flows. It added that reliable access to foreign exchange remains critical for airlines to cover operational costs, including aircraft leasing, maintenance and fuel, most of which are denominated in dollars.
While some countries have made progress in clearing arrears, IATA cautioned that the overall level of blocked funds remains unacceptably high, particularly in regions where air transport plays a central role in economic integration and development.
