IATA urges FG to release ₦1.95trn in trapped Airline Funds
…Reports 13.6% rise in African airlines’ international passenger demand in April 2025
By Seun Ibiyemi
The International Air Transport Association (IATA) has appealed to governments worldwide to release $1.3 billion (₦1.95 trillion) in airline revenues that remain blocked from repatriation as of the end of April 2025.
In a statement issued on Sunday, IATA’s Director-General, Mr Willie Walsh, underscored the importance of timely access to airline earnings, pointing out that although the current figure is lower than the $1.7 billion reported in October 2024, it still represents a substantial challenge to airline operations.
“Ensuring timely repatriation of revenues is vital for airlines to meet dollar-denominated obligations and sustain their services,” Walsh said.
He noted that delays and denials of access to these funds breach bilateral air service agreements and expose airlines to heightened foreign exchange risk.
“Predictable access to revenue is essential for any business, particularly for airlines that operate on very narrow margins,” he added.
Walsh also reminded governments of their obligations under international agreements and treaties, which require the unrestricted repatriation of revenues earned from ticket sales and other commercial activities. He warned that blocking such funds undermines air connectivity, which in turn affects economies and jobs reliant on international aviation.
“Governments need to understand that withholding or delaying airline revenues jeopardises air links. These links are critical to the global economy and to the livelihoods that depend on air transport,” he said.
While IATA did not name the countries involved, it revealed that ten nations are responsible for approximately 80 per cent of the total blocked funds. The association continues to press for the removal of financial constraints that threaten the viability of global air services and has urged governments to honour their international obligations to foster industry resilience and growth.
In related developments, IATA’s April 2025 report shows that African airlines recorded a 13.6 per cent increase in international passenger demand compared to April 2024, signalling ongoing recovery in the continent’s aviation sector amid a broader global rebound.
According to the report, capacity among African carriers grew by 8.9 per cent year-on-year. However, the region still posted the lowest load factor among all regions at 76.3 per cent, meaning fewer than eight out of every ten seats on international flights were filled.
These indicators are derived from key industry metrics: passenger demand refers to revenue passenger kilometres (RPK), calculated by multiplying the number of paying passengers by the distance travelled; capacity is measured in available seat kilometres (ASK); and load factor represents the proportion of seats occupied, a critical indicator of operational efficiency and profitability.
The report stated: “African airlines saw a 13.6 per cent year-on-year increase in demand. Capacity rose 8.9 per cent year-on-year. The load factor reached 76.3 per cent, a 3.1 percentage point increase from April 2024.”
After two consecutive months of decline, this rebound points to a steady recovery for African airlines. Nonetheless, the comparatively low load factor highlights continued scope for market expansion and improved utilisation of existing capacity.
