Ethiopian Airlines Soars with $7.6B Revenue Despite Domestic Losses

The Ethiopian Airlines Group (EAG) has posted a robust revenue performance of 7.6 billion dollars for the 2024/25 fiscal year, an eight percent increase year-on-year, propelled by growing demand in international travel and cargo services. The national flag carrier served 19 million passengers, two million more than last year, and moved 784,000 tons of cargo, representing a four percent rise.

Mesfin Tassew, CEO of the Group, attributed the performance to the Airline's ability to tap into strategic growth markets across both passenger and freight services in the post-pandemic aviation industry. According to Mesfin, passenger ticket sales contributed 70pc of total revenue, while the remaining was generated from cargo, maintenance, repair, and overhaul services, and hospitality ventures.

“We’ve seen a consistent rebound in international travel coupled with increased cargo demand, which has underpinned our revenue expansion,” said Mesfin, at a press briefing today, presenting the Group's financial report.

Despite these gains, the Airline's domestic operations posted a 28 million dollars loss, a result of structural pricing mismatches and external cost pressures. Aircraft leasing fees, fuel, and spare parts, denominated in hard currency, have surged, while domestic fares remain pegged in the devaluing Birr, exposing the Airline to mounting losses.

Mesfin disclosed that domestic ticket prices will be adjusted gradually to restore operational balance, to break-even in the near term. Nonetheless, overall profitability is expected to grow by over 20pc, pending external audit confirmation.

Ethiopian Airlines added six international destinations over the past fiscal year, alongside the inauguration of a cargo hub in the DR Congo (DRC) in partnership with local actors, an effort geared towards its pan-African strategy.

On the domestic front, destination coverage is expanding from 21 to 27 airports, with Yabelo Airport slated for launch next month. Four new terminal buildings are also under construction in Denbi Dolo, Bahir Dar, Nekemte, and Shera, signaling deeper integration into underserved regions. Bole International Airport has finalised its expansion and now boasts the capacity to handle over 25 million passengers annually, reinforcing Addis Abeba's role as a key continental aviation hub.

The Airline has completed the design phase for Bishoftu Airport, a major greenfield investment expected to handle 80 million passengers annually. The project, estimated at 10 billion dollars, will feature two terminals, rivaling some of the largest hubs globally.

Ethiopian Airlines plans to finance 20pc of the cost, with the balance expected from a consortium of lenders organised by the African Development Bank (AfDB). A financial advisor has been appointed to structure the financing deal.

The Airline's hospitality wing is scaling up, too. The Skylight Hotel brand now manages four new lodges, while a pilot water tour program has commenced, with the first vessel expected in October, marking an unconventional entry into tourism diversification.

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