The International Air Transport Association (IATA) has confirmed that foreign airlines operating in Nigeria have a total of $743.7 million trapped due to the country’s ongoing forex challenges. This figure highlights the growing financial strain on international carriers struggling to repatriate their earnings.
According to IATA’s latest global report for May 2025, African airlines experienced a 2.1% drop in air cargo demand compared to the same period in 2024. However, they expanded cargo capacity by 2.7%, resulting in a cargo load factor of 42.2%.
On a more positive note, passenger travel demand in Africa rose by 9.5% year-on-year, while seat capacity climbed 6.2%. IATA also identified the Africa-Asia route as the fastest-growing corridor, with a 15.9% increase in international travel volume.
Globally, total travel demand grew by 5%, with both available seat kilometers (ASK) and revenue passenger kilometers (RPK) reflecting the same growth rate. International travel alone saw a 6.7% increase, while capacity rose 6.4% and the load factor reached 83.2%—a new record for international flights in the month of May.
Willie Walsh, IATA’s Director General, noted that travel demand in May grew unevenly across regions. The Asia-Pacific region led with a 9.4% rise, while North America dipped by 0.5%, largely due to a 1.7% fall in U.S. domestic travel. He emphasized that geopolitical tensions in the Middle East, particularly disruptions in late June, continue to pose operational challenges.
Walsh also pointed out that despite these concerns, consumer confidence remains strong, with forward bookings for the Northern Hemisphere’s summer travel season showing encouraging trends. He advised close monitoring of oil prices, which stayed low throughout May but remain vulnerable to global instability.
