When the International Air Transport Association (IATA) raises the alarm, it usually means the aviation sector’s thermometer is entering a critical zone. And according to its latest update as of the end of October 2025, USD 1.2 billion in airline revenues remain blocked by governments, preventing any repatriation of funds — a constraint that is slowly suffocating airlines already struggling with global economic volatility.

A Largely African Crisis: 93% of Blocked Funds in Africa and the Middle East

Of the 1.2 billion USD identified, 1.12 billion remain trapped in 26 countries across Africa and the Middle East. For an industry whose average margins hover around 2–3% in a normal year, this freezing of cash feels like a slow strangulation.

Willie Walsh, IATA’s Director General, reiterates a point many governments appear to overlook:

“Airlines need reliable access to their revenues in U.S. dollars to keep operations running, pay their suppliers, and maintain connectivity.”

The issue goes far beyond balance sheets: air connectivity is a logistics catalyst, supporting supply chains, cross-border trade, tourism, investment flows, and the export of perishable or pharmaceutical products.

Top 10 Most Problematic Countries: Algeria Now Leads the List

Here is the new map of financial risk for airlines:

Algeria: A Sharp Increase

For the first time, Algeria tops the list, following a new approval requirement issued by the Ministry of Trade, adding to an already cumbersome administrative process.
The result: a rapid buildup of unrepatriated funds that worries international carriers.

XAF Zone: A Slight but Insufficient Decline

Blocked funds in the region decreased from 191 million to 179 million USD. The improvement remains modest, as airlines continue to denounce the three-step internal validation process required by the Banque des États de l’Afrique Centrale (BEAC).
Processing times remain slow, and approvals can still take several months.

A Structural Threat to African Supply Chains

Beyond airline finances, currency restrictions pose direct risks to African logistics:

1. Disruptions to Air Cargo

Carriers hesitate to increase frequencies or even reduce capacity. Consequences include:

• rising freight rates,

• unstable cargo capacity,

• risks for fresh-produce exporters (agri-food, flowers, fisheries).

2. Impact on Pharma Logistics and E-Commerce

Regional logistics hubs — especially in East and Southern Africa — depend heavily on stable air transport for temperature-sensitive, high-value, or time-critical goods.
Instability in airline operations can severely disrupt these flows.

3. Lower Attractiveness for Supply Chain Investors

An environment where revenues cannot be repatriated discourages global logistics operators from establishing warehouses, service centers, or cargo bases.

Why Are Governments Blocking These Funds?

According to IATA, three main factors explain the restrictions:

1. Chronic foreign-exchange shortages (common in Southern Africa and CEMAC countries)

2. Capital controls driven by political or economic instability

3. Excessive bureaucratic procedures without clear economic necessity

Yet bilateral air service agreements — signed by all countries concerned — explicitly guarantee free convertibility and repatriation of airline revenues.

IATA’s Call: Prioritize Repatriation Even When Dollars Are Scarce

Walsh acknowledges that governments face difficult FX allocation choices. But he emphasizes the long-term economic cost of blocking airline funds:

“The long-term benefits — in trade, jobs, and economic integration — outweigh the short-term budget relief.”

In short, blocking airline revenues undermines national economies: fewer flights lead to reduced connectivity, weaker trade, and ultimately lower fiscal revenues.

To increase accountability, IATA has also launched a quarterly tracking web page dedicated to monitoring blocked airline funds worldwide.

Africa Must Choose Between FX Controls and Strategic Connectivity

Air transport remains a critical link for African economies, where maritime and rail alternatives are often insufficient.
Blocking airline revenues ultimately weakens the entire African supply chain, from exporters to final consumers.

If the situation does not improve soon, airlines may cut capacity, raise fares, or even exit certain markets.
A scenario in which neither governments nor supply chain stakeholders would benefit.