Latin America's largest airline has become the latest carrier to suspend its operations in ailing Venezuela as the cash-strapped Government withholds about $5.3 billion in funds belonging to 24 carriers.

Key points: Latam Airlines departs Venezuela after Lufthansa, Alitalia, Air Canada and Gol

Latam Airlines departs Venezuela after Lufthansa, Alitalia, Air Canada and Gol International airlines struggle to repatriate Venezuela revenue as the Government tightens exchange controls

International airlines struggle to repatriate Venezuela revenue as the Government tightens exchange controls Many airlines now require passengers to pay fares in cash

Latam Airlines has announced "the current complex economic scenario in the region" is forcing it to end flights to Caracas.

"Latam Airlines will suspend temporarily and for an undefined time its operations to Caracas airport," the Chile-based company said.

Flights between Sao Paulo and Caracas will stop at the end of May, and those from Santiago and Lima will end in July, the company said.

It said it would work to restart operations "as soon as conditions permitted".

Many airlines now require passengers to pay fares in cash, but a deep recession and rocketing inflation has put foreign travel out of many Venezuelans' reach.

At the same time, international airlines have struggled for years to repatriate revenue held in Venezuela's local bolivar currency as the cash-strapped Government tightened exchange controls.

Over the weekend, Germany's Lufthansa also said it was halting Caracas-bound operations and was owed more than $139 million in ticket revenue.

Alitalia, Air Canada and Gol have suspended all operations there. American Airlines reinstated a route to New York in December but axed it again just three months later due to low demand. It still flies to Miami.

Others still operating include Air France, United and Iberia, which all said on Monday that they were maintaining their Caracas schedules.

International Air Transport Association chief executive officer Tony Tyler warned in March that the few remaining airlines still operating in Venezuela "may throw in the towel".

"You can sense the frustration," he said on the sidelines of an airline conference in Chilean capital Santiago.

"Some have said to us privately that they are thinking seriously about whether they can afford to keep these operations going."

Economic woes in the region have been spurring Latam Airlines to shift flights away from struggling areas like Brazil and Venezuela toward places like a still-growing Peru.

The company had already reduced flights to Caracas, and a spokesman said the just-suspended routes made up less than 1 per cent of its overall operations.

Reuters