If there’s one thing airlines don’t appreciate (aside from unclaimed baby vomit in seatback pockets), it’s governments sitting on their hard-earned cash. Yet, as of April 2025, a staggering US$1.3 billion in airline revenues is being held hostage across various countries, according to the International Air Transport Association (IATA). That’s no small change—it’s more than a few shiny new jets, or, at the very least, quite a lot of pretzels and kerosene.
While this sum does represent a 25% improvement from the US$1.7 billion reported in October 2024, IATA isn’t popping the champagne just yet.
“Ensuring the timely repatriation of revenues is vital for airlines to cover dollar-denominated expenses and maintain their operations,” said IATA Director General Willie Walsh. “Delays and denials violate bilateral agreements and increase exchange rate risks. Reliable access to revenues is critical for any business—particularly airlines, which operate on very thin margins.”
Walsh, never one to mince words, added that governments who block or delay these funds are essentially kicking international connectivity in the shins—a move with serious knock-on effects for jobs, economies, and global trade.
10 Offending Countries Responsible for $1 Billion
According to IATA’s figures, ten countries are responsible for a lion’s share—roughly 80%—of the blocked airline funds. And in a plot twist that would make Agatha Christie blink, Mozambique has surged to the top of the offenders’ list with US$205 million frozen, a hefty leap from US$127 million last October.
Here’s the complete list of high-flyer fund hoarders:
-
Mozambique: $205 million
-
XAF Zone (Cameroon, CAR, Chad, Congo, Equatorial Guinea, Gabon): $191 million
-
Algeria: $178 million
-
Lebanon: $142 million
-
Bangladesh: $92 million
-
Angola: $84 million
-
Pakistan: $83 million
-
Eritrea: $76 million
-
Zimbabwe: $68 million
-
Ethiopia: $44 million
Together, these countries account for over US$1.03 billion of the total amount frozen globally. Most of this is concentrated in the Africa and Middle East (AME) region, which alone accounts for 85% of the total blocked funds, or US$1.1 billion.
Progress Made, But the Problem Persists
There is, thankfully, a glimmer of good news in the gloom. Both Pakistan and Bangladesh—previously among the top five worst offenders—have made notable progress in whittling down their backlogs. Pakistan reduced its hold from US$311 million to US$83 million, while Bangladesh shaved its figure from US$196 million down to US$92 million.
And in a rare bit of financial redemption, Bolivia deserves a standing ovation for clearing its slate entirely, down from US$42 million to zero. That’s right: nada, zilch, zip.
Still, the big question remains: what’s holding these governments back?
In many cases, it’s a toxic mix of foreign currency shortages, inflationary pressures, and strict exchange controls—plus a touch of bureaucratic inertia. But the bottom line is that these funds don’t belong to governments. They belong to airlines, many of which are already operating on tight margins, navigating volatile fuel prices, and coping with the demands of post-pandemic recovery.
Why It Matters: Connectivity on the Chopping Block
Airlines aren’t just squawking over spreadsheets. This has real-world consequences. Denied or delayed revenue repatriation forces carriers to reconsider routes or even suspend services entirely to markets that no longer make commercial sense.
“Governments must realise that it is a challenge for airlines to maintain connectivity when revenue repatriation is denied or delayed,” said Walsh. “Economies and jobs rely on international connectivity.”
And that’s where the knock-on effect begins: fewer flights mean reduced tourism income, higher travel costs, fewer business connections, and, for some remote regions, the potential loss of their only air link to the outside world.
The Call to Action
IATA is urging all governments, especially the top ten culprits, to lift the barriers, uphold their international treaty obligations, and allow airlines to repatriate their funds without further delay.
It’s not just a matter of financial housekeeping. It’s about trust, sovereignty, and the smooth, uninterrupted movement of people and goods across borders.
And let’s be honest—if airlines are expected to deliver your luggage (eventually), governments should deliver on their promises, too.
By My Thanh Pham
