By Abdullahi Salad - Reporter
Ethiopia, 1 May 2026 The International Air Transport Association, IATA, has launched a pilot of its Billing and Settlement Plan in Somalia to modernize aviation payments and expand air travel services.
The pilot paves the way for a full launch expected at the end of May 2026. The system will allow airlines and travel agents in Somalia to operate through a global framework that manages ticket sales, accounting and payments between travel agencies and airlines.
IATA said the implementation of BSP supports the Somali government’s ambition to grow the aviation sector and expand global connectivity. Somalia, which has a large diaspora and growing trade links with Africa and the Middle East, has seen rising demand for air travel in recent years.
Four travel agencies and several airlines operating in Somalia, including Ethiopian Airlines, will take part in the pilot. This is expected to pave the way for BSP to open to all airlines and more than 300 travel agencies operating in Somalia when the system is fully launched in May 2026.
BSP is a global system designed to simplify and organize financial transactions between IATA-accredited travel agents and airlines. The system tracks ticket sales, collected payments and settlements between airlines and travel agents.
According to IATA, the system is used by more than 400 airlines and tens of thousands of travel agencies around the world. In 2025, BSP processed more than 700 million transactions in more than 180 countries, with a total value of $242 billion.
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Somalia’s Minister of Transport and Civil Aviation, Mohamed Farah Nuh, said Somalia is at an important moment of transformation in its aviation sector.
“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,” the minister said.
Kamil Alawadhi, IATA’s Regional Vice President for Africa and the Middle East, said the organization commends 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,” Alawadhi said.
The step comes as Somalia seeks to strengthen its aviation infrastructure, attract more airlines and make travel easier for Somalis living inside the country and across the diaspora.