Airlines Strategy
IATA Reports $1.2 Billion in Blocked Airline Funds with Algeria Leading
IATA reports $1.2 billion in blocked airline funds, mainly in Africa and the Middle East, with Algeria now the top country for fund blockages.
The International Air Transport Association (IATA) announced on December 10, 2025, that the total amount of Airlines funds blocked by governments worldwide stands at $1.2 billion. While this figure represents a decrease from the $1.7 billion reported in October 2024, the association warns that the crisis has become heavily concentrated in specific regions, posing a significant threat to connectivity.
According to the latest data released by IATA, 93% of these blocked funds are currently trapped in African and Middle Eastern countries. The inability of airlines to repatriate revenues from ticket sales, cargo, and other activities threatens the financial viability of routes into these markets. The report highlights a shifting landscape where previous offenders like Nigeria have cleared backlogs, only to be replaced by new bottlenecks in nations such as Algeria.
The IATA report details a concerning trend where, despite a global reduction in blocked funds over the last 18 months, specific markets are seeing conditions deteriorate. As of October 2025, the top five countries or regions accounting for the majority of blocked funds are:
For the first time, Algeria has topped the list of countries blocking airline funds. IATA attributes the accumulation of $307 million primarily to complex new approval requirements introduced by the Algerian Ministry of Trade. These administrative barriers effectively freeze airline revenues, complicating operations for international carriers serving the market.
The XAF Zone, which includes Cameroon, the Central African Republic, Chad, the Republic of the Congo, Equatorial Guinea, and Gabon, remains the second-largest holder of blocked funds at $179 million. According to IATA, the primary cause is bureaucratic delays at the Bank of Central African States (BEAC), which enforces a slow validation process for outgoing payments.
The blockage of funds is not merely an accounting issue for carriers; it represents a macroeconomic threat to the nations involved. IATA data indicates that the aviation sector contributes approximately $75 billion to African GDP annually and supports roughly 8.1 million jobs across the continent. When airlines cannot access their revenues, they are often forced to reduce flight frequencies, use smaller aircraft with less cargo capacity, or suspend routes entirely.
Willie Walsh, the Director General of IATA, emphasized the necessity of reliable financial flows for the industry:
“Airlines need reliable access to their revenues in U.S. dollars to keep operations running… Governments have committed to unfettered repatriation of funds in bilateral agreements. It is also in the interest of governments to foster the economic catalyst that airlines provide.”
, Willie Walsh, Director General, IATA
In a positive development, the report notes that Nigeria has successfully cleared 98% of its backlog. Previously the world’s worst offender with nearly $850 million blocked in 2023 and 2024, Nigeria’s turnaround demonstrates that government engagement and policy reform can effectively resolve repatriation crises. The shift in the epicenter of blocked funds from Nigeria to Algeria highlights a “Whac-A-Mole” dynamic in global aviation finance. While the total volume of blocked cash has decreased, the underlying friction between protecting foreign reserves and maintaining global connectivity persists.
We observe a critical distinction in the causes of these blockages. In countries like Lebanon ($138 million blocked), the issue is driven by a severe, ongoing economic crisis and genuine shortages of foreign exchange. In contrast, the situation in Algeria appears to be driven by administrative policy choices rather than pure insolvency. This distinction is vital for airlines; while economic crises are difficult to navigate, administrative hurdles are often viewed as violations of bilateral air service agreements, potentially leading to faster retaliatory measures such as capacity cuts.
What are blocked airline funds? Why has Algeria become the top offender? How much money is currently blocked globally? Sources: IATA
IATA Reports $1.2 Billion in Blocked Airline Funds; Algeria Emerges as Top Concern
Regional Concentration and Top Offenders
The Rise of Administrative Hurdles in Algeria
Persistent Issues in the XAF Zone
Economic Implications and Industry Reaction
A Success Story in Nigeria
AirPro News Analysis
Frequently Asked Questions
Blocked funds refer to revenue generated by airlines in a foreign country (from ticket sales, cargo, etc.) that the local government prevents from being transferred back to the airline’s home country, usually due to foreign currency shortages or administrative controls.
Algeria has risen to the top of the list due to new, complex approval requirements from its Ministry of Trade, which have created significant administrative delays in repatriating funds.
As of October 2025, IATA reports that $1.2 billion is blocked globally, with the vast majority located in Africa and the Middle East.
Photo Credit: IATA