Airlink halts ticket sales to Mozambique amid blocked funds crisis

South Africa’s regional airline, Airlink, has temporarily stopped selling tickets for flights to Mozambique, and the reason goes far deeper than scheduling. At the heart of the issue lies a growing crisis around “blocked funds” that threatens the sustainability of air travel across the continent.

Why Airlink is Pulling Back

Airlink confirmed that it is struggling to repatriate millions in revenues earned from ticket sales in Mozambique. In plain terms, the airline can’t move the money it makes there back to South Africa or other markets. This has created what the airline describes as “considerable pressure” on its finances, despite its commitment to connecting regional destinations and supporting Mozambique’s tourism economy.

In a letter addressed to Avitum, the Association of Travel Agents and Tour Operators of Mozambique, Airlink warned that if the situation does not improve, it may consider shutting down local ticketing channels altogether. The carrier has promised to give ample notice to travel agents and passengers if such drastic measures are taken.

A Wider Aviation Problem

This isn’t just an Airlink problem. According to the International Air Transport Association (IATA), airlines worldwide had $1.3 billion in blocked funds as of April 2025. Shockingly, 85% of those funds were tied up in Africa and the Middle East.

Mozambique has become the worst offender, with $205 million in withheld revenues, up from $127 million just a few months earlier. While the global total of blocked funds has slowly decreased, the Mozambican crisis has escalated.

Government Promises, but No Timelines

Mozambique’s Finance Minister, Carla Loveira, acknowledged the crisis in June, saying the government is working with domestic banks to release foreign currency and ease restrictions. But for airlines, the absence of a clear timeline has only deepened frustration.

For South African travellers, the ripple effects could be significant. Mozambique is not only a popular leisure destination for Joburg holidaymakers chasing warm beaches, but also an important business and trade hub.

Public Reaction and Industry Concern

The news sparked frustration across local travel forums and social media, where many passengers voiced fears about cancelled holidays, disrupted work trips, and higher ticket prices if connectivity shrinks further. Travel agents have also expressed concern, as Mozambique routes often serve as gateways to the rest of Africa.

Industry watchers warn that the longer the funds remain blocked, the more airlines will scale back, and that could make cross-border travel more expensive and less reliable. For a region already battling rising travel costs, the suspension is another blow.

A Fragile Balance

Airlink’s move highlights the fragile balance between regional connectivity and financial sustainability. Without swift solutions from Mozambique’s government and banking system, airlines may have no choice but to cut services a scenario that could isolate one of Southern Africa’s key markets.

For now, passengers are urged to monitor updates closely. What happens in Mozambique may set the tone for how other African nations handle blocked funds, and ultimately, how sustainable air travel remains in the region.

Source:The South African 

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com