Global Airlines Face Fresh Cash Flow Crisis As $1.2 Billion In Ticket Revenue Remains Trapped

International carriers are grappling with renewed financial pressure as $1.2 billion in ticket revenues remain “blocked” and inaccessible for repatriation globally. According to the latest IATA report released in late January 2026, Africa and the Middle East account for a staggering 93 percent of these trapped funds.

While Nigeria, formerly the world’s largest debtor successfully cleared nearly 98% of its $850 million backlog in late 2024, the global situation has worsened elsewhere. Algeria has now topped the list of culpable countries with $307 million trapped, followed by the XAF Zone (Central African nations) at $179 million, and Lebanon at $138 million.

The “trapped revenue” phenomenon occurs when airlines sell tickets in local currencies but are unable to convert those earnings into U.S. dollars for repatriation due to government-imposed forex controls.

 For airlines operating on razor-thin margins, this creates a “connectivity risk premium,” where carriers are forced to hike fares or reduce flight frequencies to hedge against currency devaluation. IATA Director General Willie Walsh warned that these restrictions violate bilateral air service agreements and threaten the commercial viability of routes, particularly in regions where operational costs are already 17% higher than the global average.

While Nigeria remains off the “top debtor” list in 2026, the local aviation sector is facing a different kind of revenue pressure. Domestic carriers are currently reporting a 50 percent drop in passenger load factors following the December peak season, with many flights averaging below the 75% break-even point.

This “low season” drain, combined with the lingering effects of the 2024 devaluation on maintenance costs, has left local operators like Air Peace and United Nigeria struggling with liquidity. The industry now finds itself in a precarious position where international airlines fear the return of blocked funds, while domestic players face a “profitless winter” of empty seats and high fixed costs.