IAG has €184m pending repatriation from Venezuela

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IAG says it has €184 million ($253 million) worth of airline ticket sales held in Venezuela due to rigid currency controls.

The group says the funds have been recognised by Venezuela’s central bank, but not yet repatriated.

“We have implemented a model as to not increasing our exposure there,” said IAG chief financial officer Enrique Dupuy de Lome during the full-year results presentation today.

Earlier this month, Air France-KLM Group said it had $290 million trapped in the country as the Venezuelan government is preventing foreign airlines from repatriating income obtained in local currency after an increasing number of Venezuelans used unrestricted airline tickets to obtain foreign currencies for travel.

SkyTeam member Air Europa stopped selling tickets in Venezuela last month. The Venezuelan government reportedly promised the Spanish carrier a combination of cash, government bonds and jet fuel in response.

Ecuador’s TAME suspended flights to Venezuela in January, saying it was owed $43 million.

Earlier this month, Copa Airlines said it had $487 million in Venezuela pending repatriation.