Ethiopian Plots a Move to a Bishoftu Mega-Airport in Four Years

Feb 28 , 2026. By BEZAWIT HULUAGER ( FORTUNE STAFF WRITER )

Senior executives at Ethiopian Airlines Group (EAG) are weighing a decisive move in 2030, shifting international operations from Bole International Airport to a planned new airport near Bishoftu town, 45Km southeast of Addis Abeba. Under the plan presented by Adamu Tadelle (CFO), Bole Airport would remain a domestic terminal, with VIP flights, as the Airline argues that congestion and physical constraints can no longer be addressed on-site.

Senior executives at Ethiopian Airlines Group (EAG) are weighing a decisive move in 2030, shifting international operations from Bole International Airport to a planned new airport near Bishoftu town, 45Km southeast of Addis Abeba.

Adamu Tadelle Chief finance officer (CFO) of the Ethiopian airlines group told Fortune that, Bole Airport would remain a domestic terminal, with VIP flights, as the Airline argues that congestion and physical constraints can no longer be addressed on-site. Adamu's response is justified as a response to constraints on the Airline, including terminal congestion, limited parking and apron space, airport-wide throughput, surrounding development that blocks further expansion, and altitude-related payload fees.

"They can no longer be addressed at Bole," he said.

Adamu’s key argument is about sequencing. He believes managing two transit hubs in different locations would be difficult. According to him, the Group will back a single international hub model.

“There will be no phased transition, and operations will transfer directly in 2030,” he said. “You can't have two international airports.”

First built in the early 1960s and named Haile Sellasie I Airport, Bole's limits are presented as structural. It is in the Bole area, six kilometres southeast of the city centre, and is the Airline’s main hub. Expanded in 2008 to a capacity of about six million passengers a year, later expansions lifted capacity to 25 million passengers annually. But demand has already reached that level, and the built-up surroundings constrain further expansion.

Passenger statistics reinforce urgency. Adamu disclosed that by June 2025, Bole Airport had handled nearly 20 million passengers and was operating at capacity. According to company reports, Ethiopian Airlines carried 13.9 million passengers in 2022/23, grew by 30pc the following year, and reached 19 million in 2024/25, a six percent rise.

The Group's senior executive team has been presented with two choices of expanding Bole Airport again or building a new airport.

“Bole Airport had reached the limit of expansion," said Adamu. "Building a new one was the next choice.”

The new airport is tied to a long-term growth plan that the Airline links to its 1946 establishment, Vision 2025, and the 2017 creation of the Ethiopian Airlines Group.

At Standard Bank’s African Market Conference held on February 25, Adamu outlined Vision 2040, based on five pillars. Among them are fleet expansion, human resource development, and sustainability. The Group will operate a fleet of 356 aircraft, carry 63.9 million passengers to 290 destinations, and transport 1.9 million tonnes of cargo. It projects to generate an annual revenue of 29 billion dollars.

The centrepiece is Bishoftu International Airport, planned in two phases for 60 million passengers in the first phase and 50 million in the second, totalling 110 million a year. Bishoftu is expected to have four runways, while Bole has one.

The relocation is justified through the Airline’s current scale.

The Airline had its first scheduled flight to Cairo. In 1960, it started its first flights to West Africa, connecting Accra, Dakar, and Addis Abeba following the establishment of the Organisation of African Unity (OAU). Jet services began in 1962, and by 1973, the Airline was connecting the United Kingdom (UK) and China. In 2010, Ethiopian Airlines launched Vision 2025, which spurred rapid growth and led to the establishment of the Ethiopian Airlines Group in 2017, incorporating Ethiopian Airports Enterprise and the Skylight Hotel.

By June 2025, the company said, it had transported 19 million passengers and just over 784,000 tonnes of cargo, with revenue of 7.6 billion dollars. Its fleet had about 148 aircraft in operation, with 100 more on order, and an average age of 7.7 years. It runs about 3,000 weekly flights.

The Group has secured 39,000hct of land, completed the relocation of farmers at a cost of 350 million dollars, and begun early works in January 2026. The total estimated cost is 12.5 billion dollars. Financing, Adamu disclosed, will follow a project finance structure through a limited-recourse special purpose company, with debt and equity in a 70-to-30 ratio and equity contributed by the Airline.

“We're not planning on equity investment for the business impact analysis,” he said.

Non-disclosure agreements have been signed with 42 entities, information memorandums and a financial model were distributed in November last year, and letters of interest have been received. An export credit agency coordinating bank finance is being selected, and the special-purpose company is being established.

“We need the special-purpose company established to secure a loan,” he said.

The Airline released a cost breakdown for phase one, with at least 52 parties showing interest. Land acquisition and relocation are budgeted at 741 million dollars, and the early works package at 633 million dollars. Lump-sum turnkey packages total eight billion dollars, with infrastructure works for airfield and landside at 1.7 billion dollars, main facilities at 3.9 billion dollars, support facilities at 1.4 billion dollars, and off-site links at 954 million dollars.

Financing and other associated costs add 3.1 billion dollars. Speaking at the conference in Capetown, Adamu confirmed the interest of Standard Bank’s finance team, including the Chief Executive Officer for Corporate & Investment Banking, Luvuyo Masinda.

According to Yonatan Menkir, an aviation analyst, the federal nature of the project limits risk, but raises concerns about regional administrations and private-sector facilities such as hotels and related investments. Addis Abeba has long been considered a safe haven, he warned, and investor confidence could be tested if the surrounding ecosystem loses its anchor.

However, “political capitals even relocate, let alone airports.”

For Adamu, the Bishoftu project is part of an Africa connectivity story, where travellers between African countries have often had to route through Europe and then return to Africa. He argued the Airline is changing that. Ethiopian Airlines flies to 66 destinations in Africa, though air traffic rights constrain passenger movement.

“Cargo isn't a problem," he told stated  "But very important in cargo is the African free trade. It's still very thin. High fuel, landing and navigation costs make operations expensive."

Free air transport in Africa is tied to the Single African Air Transport Market, which has been accepted by 34 of the 53 African countries. However, implementation remains pending, and is linked to the African Union’s Agenda 2063 and the 1999 Yamoussoukro Decision. Yonatan urged earlier implementation, arguing that high taxes and related costs have pushed aviation into a lower phase and that “the African air market is dominated by foreign airlines.”

“Protectionism isn't the way,” he told Fortune.

PUBLISHED ON Feb 28,2026 [ VOL 26 , NO 1348]