Ethiopia is one of ten countries responsible for nearly ninety percent of airline funds blocked globally, with USD 54 million in foreign currency revenues owed to international carriers remaining unrepatriated, according to a report released this month by the International Air Transport Association (IATA) .
IATA said a total of USD 1.2 billion in airline funds was blocked by governments as of the end of October 2025, despite a marginal improvement of USD 100 million since April.
Of the total amount, 93 percent is concentrated in Africa and the Middle East, reflecting persistent foreign exchange constraints across the region .
Ten countries across Africa, the Middle East, and South Asia account for USD 1.08 billion or 89 percent of the overall blocked funds.
Ethiopia and Pakistan were each listed with USD 54 million, placing Ethiopia eighth among the countries named. Algeria topped the list with USD 307 million, followed by the XAF Zone (a group of six central and west African countries) at USD 179 million, and Lebanon at USD 138 million.
The Association says the blocked funds consist of revenues generated from ticket sales, cargo services, and other aviation-related activities carried out by airlines within the respective countries.
Under bilateral air service agreements, governments are required to allow these revenues to be repatriated in US dollars, a commitment IATA says is being undermined by currency shortages, approval delays, and central bank restrictions.
“Airlines need reliable access to their revenues in US dollars to keep operations running, pay their bills, and maintain vital air connectivity,” Willie Walsh, IATA’s director-general was cited as saying in the report. He urged governments to prioritize airline fund repatriation even when foreign currency is scarce .
In recent years, Ethiopian Airlines has faced similar challenges in managing to recover its own revenues from other African countries.
In July 2024, Mesfin Tasew, Ethiopian Airlines Group CEO, told The Reporter that at one point the carrier had more than USD 200 million in revenues blocked across several African states, adding that although the amount had declined, it remained a “serious concern” for the flag carrier.
Addressing questions on why Ethiopia has been unable to release the USD 54 million owed to foreign airlines, members of management at the airline told The Reporter that foreign currency payment decisions fall primarily under the authority of the National Bank of Ethiopia (NBE).
The NBE did not respond to The Reporter’s attempts to obtain clarification about the unreleased funds.
IATA on the other hand has warned that prolonged restrictions on airline fund repatriation risk undermining air connectivity and the wider economic benefits aviation provides, particularly for economies dependent on international trade, tourism, and cargo transport.
The Association reiterated its call for governments to lift foreign exchange controls affecting airlines and to honor bilateral and treaty obligations guaranteeing unrestricted repatriation of airline revenues.
