Governments are withholding millions of dollars from airlines, affecting the recovery of the sector

12-12-24

Governments around the world are withholding approximately US$1.7 billion from airline ticket sales, a situation that has created serious economic difficulties for airlines, especially in Latin America. These funds, which were collected during the pandemic, remain inaccessible due to financial restrictions and policies implemented by recipient countries. The money belongs to the airlines and should have been used to facilitate their economic recovery in the midst of the crisis caused by the COVID-19 pandemic.

During the pandemic, airlines around the world saw a drastic drop in travel demand, forcing many governments to intervene to ensure that flights and air connectivity continued to operate, despite health restrictions. To this end, some airlines were forced to sell tickets for flights that would be carried out at a later date, generating a significant volume of revenue. However, although these tickets have been sold, the funds are still being held in various countries due to a combination of administrative and political restrictions imposed by governments.