Airlines are increasingly using Afghanistan’s airspace amid regional conflicts, but challenges in making overflight payments to the Taliban-run aviation authorities have raised financial and legal concerns, according to Reuters citing industry experts.
Over the past year, major airlines such as Lufthansa, British Airways, KLM, Air India, and Singapore Airlines have resumed flights over Afghanistan as aviation regulators eased restrictions.
The Taliban claims this has boosted revenue from overflight fees, which amount to $700 per flight. However, the payment process remains complicated due to Western sanctions and the freezing of Afghanistan’s government accounts abroad.
Before the Taliban took power in 2021, the International Air Transport Association (IATA) collected these fees on behalf of Afghanistan’s aviation authority. IATA halted this service after the Taliban takeover, leaving millions of dollars frozen. In response, airlines have turned to third-party intermediaries—primarily based in the UAE—to facilitate payments, but this has introduced additional risks.
Some trip support firms report difficulties in obtaining invoices from Afghan authorities, making payments nearly impossible. Jon Braid, owner of UK-based Jet Team, stated,
“The biggest difficulty is basically finding a way to pay the bills ... no one sent us a bill yet.”
Legal experts warn that reliance on intermediaries could increase the risk of illicit financial flows and potential disputes over unprocessed payments. While the U.S. Treasury has allowed financial transactions for air navigation services, concerns remain over compliance with international financial regulations.
Afghanistan’s aviation authority is estimated to have earned close to $6mn per month in late 2023 from overflight fees, according to flight tracking data. However, some aviation service providers report that it can take up to a year for Afghan authorities to issue invoices, leading to large outstanding bills.
The UAE, a key financial hub for such transactions, was removed from the Financial Action Task Force’s (FATF) grey list in 2023 but remains classified as high-risk by the European Union. The UAE government insists it has strengthened its regulatory framework to ensure compliance.
Despite the financial and legal challenges, airlines continue to transit Afghan airspace due to shorter routes and fuel savings.
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