Ethiopia and several other states are responsible for billions in blocked airline revenues, a major financial challenge for carriers worldwide, according to an International Air Transport Association (IATA) report.
The blocked airline revenues 2025 dataset shows that governments hold USD 1.2 billion of carrier funds that airlines cannot repatriate in US dollars. Africa and the Middle East together account for the lion’s share of this total, with 93% of funds trapped due to foreign exchange controls, procedural delays, and regulatory constraints.
This issue isn’t just a bookkeeping problem, it directly impacts airline liquidity, cash flow, and the ability to cover dollar-denominated costs like fuel, maintenance, and leasing fees.
What “Blocked Airline Revenues 2025” Means
Key Figures from the IATA Blocked Funds Report
- Total Blocked Funds Globally: USD 1.2 billion (as of October 2025).
- Concentration in Africa & Middle East: ~93% of total.
- Top 10 Countries Holding USD 1.08 B: Includes Algeria, XAF Zone, Mozambique, Angola, Eritrea, Zimbabwe, Pakistan, Bangladesh, and Ethiopia (USD 54 million).
What Causes Blocked Airline Revenues?
Blocked airline revenues occur when airlines cannot repatriate earnings generated in local currency back to their home accounts due to:
- Foreign exchange shortages or restrictions imposed by central banks.
- Regulatory or administrative delays in approval processes.
- Bilateral air service agreements not fully honoured, impacting cash flows and financial planning.
IATA defines blocked funds as revenues from ticket sales, cargo operations, and other activities trapped in a market due to these structural barriers.
Impact on Airlines & the Aviation Sector
Blocked funds can:
- Force airlines to delay aircraft maintenance or postpone fleet investments.
- Reduce capacity on certain routes due to funding shortages.
- Raise ticket prices as carriers attempt to hedge against financial risk.
- Undermine investor confidence in aviation markets with persistent repatriation problems.
These pressures are especially acute for airlines operating thin margins, where reliable access to revenue is critical to daily operations.
Regional Aviation Context
Africa handles a fraction of global airline traffic but faces some of the highest blocked fund rates due to ongoing foreign exchange challenges.
The International Air Transport Association continues to urge governments to:
- Lift repatriation barriers, and
- Streamline approval processes for airline earnings.
For carriers like Ethiopian Airlines, which serve as a critical hub in Africa and beyond, consistent access to dollar-denominated revenues is essential for fleet financing and international connectivity.
Expert Insight
Willie Walsh, Director General of IATA, emphasizes that continued restrictions on funds repatriation threaten airline sustainability and broader economic links.
What’s Next for Blocked Airline Revenues?
Industry outlook & next steps:
- IATA will continue quarterly reporting to track changes in blocked funds.
- Airlines may seek policy dialogue with governments and central banks to mitigate recurring constraints.
- Possible pressure via bilateral negotiations and air service agreement reviews to enforce treaty obligations.
Source
- Primary article: The Reporter Ethiopia
- IATA press release confirming the blocked funds figures
- Ch-aviation: Global context on the blocked funds distribution including Ethiopia
