$25 million in airline funds blocked in Libya due to foreign exchange restrictions

The International Air Transport Association (IATA) has revealed that $25 million in funds owed to international airlines remained blocked in Libya as of the end of March 2026, placing the country among the world’s top 10 markets for airline funds that cannot be readily repatriated.

IATA said the blocked funds represent revenues generated by airlines in local markets through ticket sales, cargo services and other commercial activities, but which cannot be converted into US dollars and transferred to the airlines’ home countries due to foreign exchange restrictions, shortages of foreign currency or regulatory barriers.

According to IATA’s latest data, Libya ranked ninth globally among the 10 markets with the largest amounts of blocked airline funds. Algeria topped the list with $258 million, followed by Lebanon with $138 million, the Central African CFA franc (XAF) zone with $89 million, Mozambique with $81 million, Eritrea with $78 million, Angola with $73 million, Zimbabwe with $65 million and Ethiopia with $40 million. Malawi followed Libya with $23 million.

IATA said allowing airlines to repatriate their revenues in US dollars in a timely manner is essential for covering dollar-denominated costs, including fuel, maintenance, aircraft leasing and salaries. It warned that prolonged restrictions on repatriating funds put pressure on airlines’ cash flows and increase their exposure to exchange-rate fluctuations.

The largest share of blocked airline funds globally is concentrated in Africa and the Middle East. IATA data showed that African countries alone accounted for around $774 million in blocked funds as of the end of March 2026.

Approximately $1.3 billion in airline funds globally remained blocked as of the end of March 2026, according to IATA data.