Since April this year, Mozambique has become the country retaining the highest amount of airline revenues in the world, according to data released by the International Air Transport Association (IATA). A total of approximately 13.1 billion meticais (205 million US dollars) is currently blocked, representing a 61% increase compared to the roughly 8.1 billion meticais (127 million dollars) recorded in October 2024.
This sharp rise places Mozambique at the top of the list of countries with the largest volumes of retained airline revenues, surpassing traditionally critical regions such as the CFA franc zone (XAF), which includes Cameroon, Chad, Gabon, Equatorial Guinea, the Central African Republic, and the Republic of the Congo, where about 12.2 billion meticais (191 million dollars) are being held.
Globally, IATA estimates that airlines face restrictions on the repatriation of approximately 83 billion meticais (1.3 billion dollars). Although still a significant figure, this represents a 25% improvement compared to the roughly 108.5 billion meticais (1.7 billion dollars) recorded in October last year. Africa and the Middle East account for 85% of this total, confirming them as the most affected regions.
In addition to Mozambique and the XAF zone, the countries with the highest volumes of blocked airline revenues include Algeria, with approximately 11.4 billion meticais (178 million US dollars); Lebanon, with about 9.1 billion meticais (142 million dollars); Bangladesh, with around 5.9 billion meticais (92 million dollars); Angola, with 5.4 billion meticais (84 million dollars); and Pakistan, with 5.3 billion meticais (83 million dollars).
They are followed by Eritrea, with 4.9 billion meticais (76 million dollars); Zimbabwe, with 4.3 billion meticais (68 million dollars); and Ethiopia, with around 2.8 billion meticais (44 million dollars).
According to IATA, this situation poses a serious obstacle to airline operations, as carriers need access to their revenues to cover operational costs such as fuel, maintenance, and aircraft leasing — most of which are priced in foreign currency. “Ensuring the timely repatriation of revenues is vital for airlines to meet their dollar-denominated expenses and keep flights operating. Delays or refusals violate bilateral agreements and increase exchange rate risks,” said Willie Walsh, IATA’s Director General.
In Mozambique’s case, the implications are particularly concerning. The retention of airline revenues could lead to a reduction in flights, the abandonment of less profitable routes, and higher ticket prices for consumers. This situation threatens not only the country’s international connectivity but also strategic sectors such as tourism, foreign trade, and direct foreign investment.
Despite the worsening situation in Mozambique, other countries have shown signs of progress. Pakistan managed to reduce its blocked funds from around 20 billion meticais (311 million dollars) to 5.3 billion meticais (83 million dollars). Bangladesh also decreased its blocked amount from 12.3 billion meticais (196 million dollars) to 5.9 billion meticais (92 million dollars), demonstrating that the situation can be reversed through dialogue with central banks and regulatory authorities.
IATA has once again called on governments to remove barriers to the repatriation of airline revenues, ensuring compliance with international commitments and the stability of the aviation sector. In Mozambique’s context, analysts advocate for the creation of a phased regularization plan, in coordination with the Bank of Mozambique, to ease pressure on the aviation industry and prevent deeper economic impacts.
Source: IATA
