Tunisair has announced the suspension of all its flights to and from Libyan airports until further notice.
This decision comes in response to significant financial losses and the inability to achieve the expected profits since the Libyan authorities imposed a tax on the US dollar.
The airline has instructed its authorized agents in Libya to halt ticket sales in the Libyan market immediately.
This move underscores the severe impact of the economic measures taken by Libya on Tunisair’s operations.
In March, the Central Bank of Libya introduced a 27% tax on foreign currency sales, set to remain in effect until the end of 2024.
This tax has complicated financial transactions and increased operational costs for airlines, including Tunisair, leading to the current suspension of flights.
Tunisair, Tunisia’s national airline, has been a vital link between Tunisia and Libya, facilitating business, tourism, and family connections between the two neighboring countries.
The airline has faced several challenges in recent years, including the broader economic downturn in the region and the global impact of the COVID-19 pandemic.
The imposition of the 27% tax on foreign currency sales by the Central Bank of Libya is part of the country’s efforts to stabilize its economy and control the exchange rate of the Libyan dinar.
However, this measure has had unintended consequences on international businesses operating in Libya, including airlines.
Libya’s ongoing political instability and economic challenges have further complicated the operating environment for foreign companies.
The travel restrictions and the added financial burden from the currency tax have made it increasingly difficult for airlines like Tunisair to maintain profitable operations in the country.
