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Airlines Recoup $500 Million in Blocked Funds From African Countries

Richard Holmes

Photo Credit: Murtala Muhammed International Airport in Lagos, Nigeria, pictured in late 2012. The International Air Transport Association is finally making headway in resolving the issue of blocked funds, which has left airlines flying into certain African countries owed millions of dollars. Flickr / afromusing

Skift Take

Accountants at Emirates, British Airways, and South African Airways must be breathing a sigh of relief. A combination of economic carrots and airline sticks — smoothed over by IATA diplomacy — has helped international carriers recoup more than $500 million in blocked funds from African governments since the start of 2018.

The International Air Transport Association is finally making headway in resolving the issue of blocked funds, which has left airlines flying into certain African countries owed millions of dollars. Wind the clock back to late 2017 and governments across Africa had blocked nearly $1 billion in payments due to global carriers. The likes of Nigeria, Sudan, Angola and Mozambique were amongst the worst offenders, their economies hard hit by the slump in the price of oil and other commodities. “These countries were overly dependent on natural resources for a substantial portion of their revenue, and they were dependent on imported products to sustain their own economies,” said Raphael Kuuchi, IATA vice president for Africa. “For many countries the question was: Do I import food for my citizens, or do I give my money to airlines?” But progress is being made. Bo

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