IATA launches pilot Billing & Settlement Plan in Somalia

The International Air Transport Association (IATA) has launched a trial run of its Billing and Settlement Plan (BSP) in Somalia, with a full rollout expected by the end of May 2026.

This move aligns with Somalia’s efforts to strengthen its aviation industry and improve international connectivity. Rising demand for air travel, driven by the global diaspora and expanding trade ties across Africa and the Middle East, has made improvements to financial and operational systems increasingly important.

The pilot program includes four travel agents and several airlines operating in Somalia, including Ethiopian Airlines. In May 2026, the BSP is expected to be open to all airlines and to over 300 travel agents in the country.

The BSP is a global system that streamlines financial transactions between airlines and IATA-accredited travel agents. It centralizes ticket sales reporting and payments, helping airlines manage revenue more efficiently, improve cash flow, and maintain strong financial oversight in line with established standards and local regulations. In 2025 alone, the system processed more than 700 million transactions across more than 180 countries, totaling 242 billion US dollars.

Somalia’s Minister of Transport and Civil Aviation, Mohamed Farah Nuh, characterized the initiative as a significant advancement in the country’s aviation development.

“Somalia stands at a pivotal moment of transformation in its aviation sector. Growing connectivity regionally and globally underpins our ambition to revitalize the economy of Somalia and position Mogadishu as a transport hub on the Horn of Africa. Despite decades of adversity, the federal government has made commendable strides in rebuilding and modernizing every aspect of its civil aviation system. This extends to putting in place financial systems to support the growth of air transport, which the opening of the BSP will provide,” said Mohamed Farah Nuh.

Kamil Alawadhi, IATA’s Regional Vice President for Africa and the Middle East, commended Somalia’s efforts toward modernization.

“We commend the steps taken by the Somali government to modernize and rebuild its aviation infrastructure. The government recognizes the significant economic benefits that air travel can deliver, and we are pleased to support them on that journey. Accelerating the implementation of secure, effective, and cost-efficient financial services is a key pillar of IATA’s Focus Africa initiative,” said Kamil Alawadhi.

Source: qazinform.com

Global air passenger demand up in March, with Africa leading, despite Gulf crisis – IATA

New international air passenger data from the International Air Transport Association (IATA) shows in numbers how sharply the U.S.-Israel war on Iran has impacted travel globally, showing that while global demand was up 2.1% from March, 2025, demand in the Middle East dropped 58.6%.

“Everybody’s watching what’s happening with jet fuel—both supply and pricing. On the supply side, over the next few months, we could see shortages in parts of the world with high dependence on supplies from the Gulf, especially Asia and Europe,” said IATA’s Director General, Willie Walsh. “And the extraordinarily high cost of jet fuel is increasingly being reflected in ticket prices.

“While this has not impacted March traffic or forward bookings to date, it remains to be seen at what point high prices could start to shift passenger behavior,” Walsh continued. “So far, the summer is shaping up to be a normally busy time for travel. That’s positive news, but airline resilience is being tested, and stabilizing the supply and price of fuel is crucial. In the meantime, regulators need to be prepared to grant airlines some flexibility on slots, considering the extraordinary circumstances of airspace capacity restrictions and potential fuel rationing.”

Global Metrics Show Uneven Growth

While revenue passenger kilometers (RPKs), which measure total air travel demand, were up 2.1%, total capacity decreased 1.7% due to the war. International travel demand fell 0.6%, with capacity down 6.2% from last March.

Airlines in the Middle East experienced a 60.8% drop in international air travel in March.

Global domestic demand fared well in March, increasing 6.5% year-over-year, with capacity up 5.6%.

Regional Stats

Regionally, growth is uneven. While passenger demand plummeted in the Middle East by nearly 60% due to the war, airlines in Africa saw a 20.6% increase in demand.

The Asia Pacific region saw an 11.5% growth; Europe saw a 7.5% growth; Latin America and the Caribbean experienced an 8.4% growth; and North America experienced a moderate 2.3% growth.

While global international travel demand fell for the first time since March 2021, regionally, most parts of the globe saw international travel demand rise.

Asia-Pacific airlines saw an 11.5% increase in demand from March 2025; European airlines celebrated a 7.7% increase; North American airlines saw a 3.7% increase; Latin American airlines welcomed a 12.1% increase; and African airlines celebrated a 19.2% increase in demand.

Domestic Travel Grows as War Creates Global Instability

In March, domestic travel demand finally outpaced international demand globally, increasing 6.5% year-over-year.

Domestic travel in Australia increased 8.8%; demand in China grew 13.7%; demand in Brazil increased 10.8%; and in the United States, it increased a moderate 1.4%.

Source : travelpulse.com