Battered airlines owed billions as governments withhold cash

Airlines are owed almost $1b across 20 countries as governments seek to hang on to hard currency, depriving the industry of vital cash at a time when travel has been devastated by the coronavirus crisis. Figures published by the IATA show that Venezuela is withholding a further $4b that’s been outstanding for years and may be permanently lost to carriers. Lebanon, Bangladesh, Nigeria and Zimbabwe are the worst offenders among other states, accounting for 60% of the $963m deficit, according to IATA. While the total is down on previous years, it is higher as a proportion of overall sales after the pandemic limited flying. “Airlines will not be able to provide reliable connectivity if they cannot rely on local revenues to support operations,” IATA DG Willie Walsh said. “Now is not the time to score an own goal by putting vital air connectivity at risk.” While blocked remittances have dogged aviation for years, they emerged as a major issue in 2013 when Venezuela tightened currency controls, leading several carriers to terminate or reduce flights there. Angola owed almost $500 million in 2018 amid a persistent shortage of foreign-currency reserves, before IATA negotiated a release of funds.<br/>