Ethiopian Airlines foresees a 30% surge in passenger numbers for the fiscal year ending in June compared to the previous year, as stated by its chief executive on Wednesday. This optimistic outlook is driven by the introduction of new routes and the gradual recovery of global travel.
Despite its position as Africa’s largest airline, Mesfin Tasew Bekele noted in an interview that Ethiopian Airlines faces challenges stemming from delayed aircraft deliveries and the grounding of certain planes due to engine shortages caused by disruptions in the supply chain.
“We have a lot of challenges. For example, today we have an aircraft shortage since the manufacturers, particularly Boeing, are delaying aircraft deliveries,” he explained. The delays primarily affect narrow-body passenger jets from Boeing, while the grounding impacts wide-body aircraft utilized for long-haul flights.
Ethiopian Airlines, which transported 13.9 million passengers in the fiscal year ending June 2023, does not operate the variant of Boeing’s MAX jets involved in a panel blow-out earlier this year. Mesfin expressed confidence in Boeing’s ability to address safety concerns, stating, “We believe that Boeing is in a good position to fix all these.”
Currently operating a fleet of 146 Boeing, Airbus, and De Havilland planes, Ethiopian Airlines aims to increase its fleet to 150. However, delivery delays have hindered this target. The airline has orders for 70 Boeing and Airbus planes, with options to purchase an additional 54, as part of its ambitious plan to double its fleet and route network by 2035.
This growth strategy is projected to result in a fourfold increase in annual revenue and a 440% increase in passenger numbers by 2035.
Ethiopian Airlines’ passenger numbers in the first nine months of the current financial year indicate progress towards achieving its growth target for the year, with a 20% revenue increase to $7.3 billion, Mesfin stated.
The airline is expanding its network and enhancing frequency on existing routes, including the addition of new destinations such as London Gatwick, Madrid, and Bangui.
Furthermore, Ethiopian Airlines is investing in its cargo business, including the launch of a $55 million e-commerce shipments handling facility at its base in Addis Ababa in February this year. Mesfin highlighted the growing demand for e-commerce on the African continent, with the airline targeting partnerships with firms like China’s Alibaba to capitalize on this trend.
Melissa Enoch
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