Tuesday, October 22, 2024

Ethiopian Airlines reports record revenue amid challenges

By our staff reporter, Photo by Anteneh Aklilu

Ethiopian Airlines has announced a strong financial performance for the 2023/2024 fiscal year, achieving a revenue of USD 7.02 billion, marking a 14% increase from the previous year. The airline’s passenger services were a major contributor, generating USD 5 billion, while its cargo operations brought in USD 1.65 billion. Despite facing challenges such as fuel shortages and flight restrictions, Ethiopian Airlines successfully transported over 17 million passengers and expanded its network to 139 international destinations.

In addition to its robust financial performance, Ethiopian Airlines has made significant progress in infrastructure development. The airline has invested over USD 458 million in capital projects, including the construction of new airports set to open across Ethiopia in the coming year. However, the airline acknowledged ongoing challenges, including instability and a shortage of spare parts. CEO Mesfin Tasew emphasized the importance of adhering to international regulations and maintaining a high standard of passenger care.

In a related development, Ethiopian Airlines has faced scrutiny over its transportation of live animals, including primates. CEO Mesfin Tasew addressed these concerns, stating that the airline has been transporting live animals, such as monkeys, sheep, goats, fish, cows, and bulls, in full compliance with international aviation laws and regulations. The CEO’s remarks came in response to accusations that the airline had transported wild animals from West Africa, including species of ‘high biosecurity concern’ like bats and primates. The World Animal Protection organization singled out Ethiopian Airlines as a major player in the global export of live wild-caught animals, including African grey parrots, civets, genets, and others.

“We transport live animals as long as payment is made and they are transported by a legal entity,” Mesfin explained. “This is done in accordance with international aviation rules, under legal permits from different countries.”

The airline has also been engaged in discussions with authorities in the Democratic Republic of Congo (DRC) to reach an agreement that would enhance the efficiency of its air transport services, expand its range of flight destinations, and introduce additional flights to Kisangani. Ethiopian Airlines currently operates 21 weekly flights to Kinshasa, 14 to Lubumbashi, and 7 to Kisangani, Goma, and other airports within the DRC.

Furthermore, Ethiopian Airlines is in talks with Equatorial Guinea, Gambia, and other countries to assist in establishing national airlines in those nations. The airline has also made overseas investments, holding stakes in airlines such as Alaska Airlines (Togo) with 26%, Malawi Airlines with 49%, and Zambia Airways with 46%.

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