Yemen's state-run airline suspends the only route out of Sanaa over Houthi restrictions on its funds

Yemen’s state-run carrier has suspended the only air route out of the country’s rebel-held capital to protest Houthi restrictions on its funds, officials said on Sunday.

Yemen Airways cancelled its commercial flights from Sanaa’s international airport to the Jordanian capital of Amman. The airline had been operating six commercial and humanitarian flights a week between Sanaa and Amman as of the end of September.

The airline blamed the Iranian-backed Houthis for the move over their withholding of its funds — USD 80 million — in Houthi-controlled banks in Sanaa.

It said in a statement on Saturday that the rebels rejected a proposal to release 70 per cent of the funds. The statement said the airline’s sales in Sanaa exceed 70 per cent of its revenues.

The statement said the Houthi ban on the funds was linked to “illegal and unreasonable demands, and caused severe damage to the airline’s activities”.

The Houthi-controlled Saba news agency quoted an unnamed source condemning the airline’s move. The source was quoted as saying that the rebels offered to release 60 per cent of the airline’s funds in Sanaa.

The Sanaa-Amman air route was reintroduced last year as part of a UN-brokered cease-fire deal between the Houthis and the internationally recognised government.

The cease-fire agreement expired in October 2022, but the warring factions refrained from taking measures that would lead to a flare-up of all-out fighting.

Yemen’s civil war began in 2014, when the Houthis seized the capital, Sanaa, and forced the government into exile. The Saudi-led coalition entered the war in early 2015 to try restore the government to power.

The fighting became a proxy war between Saudi Arabia and Iran, causing widespread hunger and misery in Yemen, which even before the conflict had been the Arab world’s poorest country. The war has killed more than 150,000 people, including fighters and civilians, and created one of the world’s worst humanitarian disasters.

The dispute between the Houthis and the national airline comes as the rebels and Saudi Arabia have appeared close to a peace agreement in recent months. Saudi Arabia received a Houthi delegation last month for peace talks, saying the negotiations had “positive results”.

The Saudi-Houthi efforts, however, were overshadowed by an attack blamed on the Houthis last week that killed four Bahraini troops who were part of a coalition force patrolling Saudi Arabia’s southern border.