Emirates will suspend all flights to Nigeria from September 1 to limit further losses and the impact on operational costs that continue to accumulate in the market. The airline has been experiencing ongoing challenges repatriating its US$85m (R1,44bn) in earnings from Nigeria back to the United Arab Emirates.
The airline has confirmed that it will assist affected customers with finding alternative travel arrangements.
Iata has reacted to Emirates’ decision in several tweets, expressing concern that US$464m (R7,89bn) of foreign airlines' funds are currently trapped in Nigeria. This total has increased from US$450m (R7,65bn) in July.
"Airlines can’t be expected to fly if they can’t realise revenue from ticket sales. Loss of connectivity harms the economy, hurts investor confidence, and impacts jobs and people’s lives. The Government of Nigeria needs to prioritise the release funds before more damage is done," Iata tweeted.
There is a strong possibility that other foreign airlines will soon follow suit, Business Insider reports.
SAA currently operates direct flights to Lagos on Wednesdays, Fridays and Sundays.
Kenya Airways flies to Lagos via Nairobi on Mondays, Thursdays and Fridays, while TAAG Angola Airlines operates a route via Luanda on Wednesdays and Saturdays.
Kenya Airways funds trapped in Nigeria
Kenya’s national airline has told the BBC the amount of money it is trying to repatriate from Nigeria, Malawi and Ethiopia amounts to a total of US$28m (R471,16m).
The carrier is withdrawing its earnings from these countries due to the ongoing foreign currency crisis.
Foreign airlines are required to sell their services using local currency, which is later converted to US dollars and repatriated to the airline’s home country. This has not happened because of a shortage of foreign currency, proving a significant setback to the operations of Kenya Airways, which has been unprofitable in recent years.
The airline says it is relying on diplomatic talks for the funds in Ethiopia, Malawi and Nigeria to be released.
