Ethiopian Airlines Group generated USD 9.1 billion in revenue for the 2025/26 fiscal year, marking a period of expansion for the national carrier despite significant operational headwinds. The airline reported a 10% increase in passenger traffic, totaling 20.7 million passengers, and a 16% rise in cargo volume to 897,000 tonnes.
Group Chief Executive Officer Mesfin Tasew noted that the airline reached 98% of its annual passenger target and 96% of its flight-hour goals. During the period, the carrier added nine aircraft to its fleet and expanded its international network to 150 destinations, including new routes to Porto, Ho Chi Minh City, Abu Dhabi, and Jeddah. Domestic reach also grew, with destinations increasing from 22 to 25.
Operational Challenges and Financial Pressures
Growth occurred alongside rising costs, with total operating expenses climbing by 25%. Geopolitical instability in the Middle East contributed to higher jet fuel prices, while regional conflicts and new travel restrictions in the United States and parts of Africa impacted route performance. The airline reported the suspension of approximately 10 Gulf-bound flights and noted that shortages of wide-body aircraft constrained its ability to meet all annual targets.
To mitigate these pressures, the airline implemented efficiency measures that recovered USD 37 million in costs. The company also expanded its non-airline operations, with its aerospace manufacturing division producing 68 components for Boeing, resulting in USD 9.2 million in revenue.
Infrastructure and Future Outlook
Infrastructure development remained a priority throughout the fiscal year. The group commissioned a new data centre, continued construction on passenger terminals at Bole, Arba Minch, Nekemte, and Dembi Dollo airports, and finalized a G+8 building for the Ethiopian Aviation University.
Looking ahead, the airline is expected to announce plans for the acquisition of 25 additional aircraft within the next two months. An announcement regarding the procurement of new cargo aircraft is also anticipated shortly.
