IATA Raises Concerns Over Airlines' Inability to Access Billions in Ticket Revenue Globally

The International Air Transport Association (IATA) has expressed worries about airlines facing financial strains as billions of dollars in ticket sales revenue remain inaccessible in several countries due to foreign exchange restrictions. Thomas Reynaert, IATA's Senior Vice President for External Affairs, highlighted the issue, stating that blocked funds pose a significant threat to global air connectivity and economic growth.

The inability to convert revenue earned in local currencies into US dollars due to government controls on foreign exchange creates operational challenges for airlines. This situation affects airlines' ability to meet financial obligations, maintain operations, and invest in new aircraft.

The blockage of funds exposes airlines to currency depreciation, higher borrowing costs, and reduced capacity for expansion. In Nigeria, domestic air travel hit a three-year low of 12.54 million passengers, contrasting with the steady growth in international passenger traffic.

Experts warn that high costs and poor services could hinder the recovery of domestic airlines.