The Venezuelan government is being urged to release almost $4 billion owed to airlines.
The funds of $3.9 billion are from sales of airline tickets in the South American country and are being held in contravention of international treaties, according to Iata.
The global aviation trade body warned that failure to release the money puts air connectivity to Venezuela at risk a major contributor to the well-being of the economy.
A total of 24 airlines are affected by the Venezuelan currency controls.
The Venezuelan government made various offers to release some of the airlines’ funds this month, but at inferior exchange rates or with arbitrary discounts, Iata said.
Director general and chief executive Tony Tyler said: “The situation is unacceptable. In March the Venezuelan government promised airlines that it would release their money for repatriation at fair exchange rates. Since then there has been very little progress.
“Airlines are committed to serving the Venezuelan market but they cannot sustain operations indefinitely if they can’t get paid.”
He added: “Preserving and protecting Venezuela’s connectivity should be a priority for the Venezuelan government. Connectivity to Venezuela is deteriorating. Urgent government action is needed.
Iata stands ready to help, but we cannot move forward without the government’s commitment to make good on its promises.”