The International Air Transport Association (IATA) has urged governments to release 1.3 billion dollars of airlines’ funds blocked from repatriation as at the end of April.
The director-general of the association, Willie Walsh, in a statement on Sunday, said that timely repatriation of airlines’ funds was crucial.
According to Mr Walsh, 1.3 billion dollars is a significant amount although it shows an improvement compared with the 1.7 billion dollars reported for October 2024.
He urged governments to remove all barriers preventing airlines from timely repatriation of their revenues from ticket sales and other activities in accordance with international agreements and treaty obligations.
“Ensuring timely repatriation of revenues is vital for airlines to cover dollar-denominated expenses and maintain their operations.
“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.
“Economies and jobs rely on international connectivity,” he said.
Mr Walsh said that governments must realise that it would be a challenge for airlines to maintain connectivity when revenue repatriation would be denied or delayed.
According to IATA, 10 countries are responsible for 80 per cent of the blocked funds.
(NAN)
