Airlink warns it may stop selling tickets in Mozambique due to blocked funds

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Airlink warns it may stop selling tickets in Mozambique due to blocked funds

4:30 CAT | 25 Aug 2025

File photo: @Fly_Airlink/X

One of the main airlines operating in Mozambique, South African Airlink, recently admitted it had stopped selling tickets in Mozambique due to difficulties in repatriating funds.

“Despite our continued commitment to serving the region and supporting the local tourism sector, we face persistent difficulties in repatriating funds generated by airline ticket sales in the country,” the airline explained in a letter addressed to the president of the Association of Travel Agents and Tour Operators of Mozambique (Avitum), Noor Momadem.

The “challenges” described in the letter “have placed considerable pressure” on “financial operations and have reached a point where they may compromise the sustainability” of the company’s commercial activity in the region.

“Regrettably, we are seriously considering terminating airline ticketing through local booking channels in Mozambique. We understand the potential impact this decision may have on travel agents and passengers, and we are actively exploring all possible avenues to resolve the situation,” the letter, signed by Airlink sales representatives, further states.

“Should the decision to suspend ticketing be finalized, we will provide extensive notice and support to ensure a smooth transition for all affected parties,” it adds.

Mozambican Finance Minister Carla Loveira said on June 16 that a process to provide the necessary foreign currency for the repatriation of airline funds held in the country was underway with domestic banks.

“We are working with the banks to ensure the requested export of foreign currency,” she said.

Lusa reported on June 2 that airlines had US$1.13 billion in funds blocked in various countries at the end of April, a list now topped by Mozambique, according to the International Air Transport Association (IATA).

“Mozambique has risen to the top of the list of countries with blocked funds, withholding US$205 million from airlines, compared to US$127 million in October 2024,” according to IATA information consulted by Lusa.

According to IATA information, globally, funds which are airlines unable to repatriate amounted to US$1.3 billion at the end of April, with the Africa and Middle East (AME) region accounting for 85% of the total, equivalent to US$1.1 billion.

“This is a significant figure, although it represents a 25% improvement compared to the US$1.7 billion recorded in October 2024. IATA urged governments to promptly remove all barriers that prevent airlines from repatriating their revenues from ticket sales and other activities, in accordance with international agreements and treaty obligations,” the international aviation industry organization stated.

Quoted in the same report, IATA Director General Willie Walsh stated that “ensuring timely repatriation of revenues is vital” to enabling airlines to “cover dollar-denominated expenses and maintain their operations”.

“Delays and denials violate bilateral agreements and increase exchange rate risks. Reliable access to revenue is critical for any business, especially for airlines operating on very thin margins. Economies and jobs depend on international connectivity. Governments must understand that it is challenging for airlines to maintain connectivity when revenue repatriation is denied or delayed,” Walsh said.

The Confederation of Economic Associations (CTA) of Mozambique warned on February 18 that the lack of foreign exchange in the market was leading airlines to limit activity in the country, calling for an urgent response.

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