Maputo, Aug. 25, 2025 (Lusa) - South Africa's Airlink, one of the main airlines operating in Mozambique, has acknowledged that it will no longer sell tickets inside 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 the funds generated by the sale of airline tickets 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 put considerable pressure" on "financial operations and have reached a point where they could jeopardise the sustainability" of the airline's commercial activity in the region.
"Regrettably, we are seriously considering the closure of air ticketing through local booking channels in Mozambique. We realise the potential impact this decision could have on travel agents, passengers, and we are actively exploring all possible avenues to resolve the situation," the letter, signed by the heads of Airlink's sales sectors, goes on to describe.
"Should the decision to suspend ticketing be finalised, we will provide extended notice and support to ensure a smooth transition for all affected parties," it adds.
Mozambique's finance minister, Carla Loveira, said on 16 June that "a process is underway" with the banks to provide the necessary currency to repatriate the airlines' funds stranded in the country.
"We are working with the banks to ensure this export of foreign currency that is being requested," she said.
Lusa reported on 2 June that at the end of April, airlines had €1.136 billion in funds blocked for repatriation in various countries, a list now led 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 205 million dollars [€180 million] from airlines, compared to 127 million dollars [€111 million] in October 2024,' according to information from IATA, consulted by Lusa.
According to the IATA report, globally, the funds blocked for airlines that are unable to repatriate them totalled $1.3 billion (€1.136 billion) at the end of April, with the Africa and Middle East (AME) region accounting for 85% of the total, equivalent to $1.1 billion (€962 million).
"This is a significant figure, although it represents a 25% improvement compared to the $1.7 billion [€1.487 billion] recorded in October 2024. IATA urged governments to remove promptly all barriers that prevent airlines from repatriating their revenues from ticket sales and other activities, in accordance with international agreements and treaty obligations," said the international airline industry organisation.
Quoted in the same report, IATA's Director General, Willie Walsh, said that "ensuring the timely repatriation of revenueshttps://www.cfp.pt/uploads/canais_ficheiros/glossario-de-termos-das-financas-publicas.pdf is vital" to allow airlines to "cover dollar-denominated expenses and maintain their operations".
"Delays and refusals 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 realise that it is a challenge for airlines to maintain connectivity when revenue repatriation is denied or delayed," said Walsh.
Mozambique's Confederation of Economic Associations (CTA) warned on 18 February that the lack of foreign currency in the market was leading airlines to limit activity in the country, calling for urgent measures.
PVJ/ADB // ADB.
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