• Ethiopian Airlines Boeing 787-8
    Ethiopian Airlines
    IATA/ICAO Code:
    ET/ETH
    Airline Type:
    Full Service Carrier
    Hub(s):
    Addis Ababa Bole International Airport
    Year Founded:
    1945
    Alliance:
    Star Alliance
    CEO:
    Mesfin Tasew Bekele
    Country:
    Ethiopia

To understand how an airline is performing, you need access to financial and operating data, which most airlines are happy to share when publishing their annual results. Unfortunately, in the case of Ethiopian Airlines, the only clue so far on how its financial year ended on June 30 turned out is a brief report on the state-owned media outlet.

Revenue up and costs down drives profit

FANA Broadcasting Corporate is a state-owned mass media company operating in Ethiopia, and on August 31 it reported a summary of the airline's results. Ethiopian Airlines (Ethiopian) posted US$5 billion in revenue for the financial year ended June 30, a 79% growth compared to FY 2021. Its profit catapulted by 97% from last year to an impressive $937 million, driven by significant reductions in operational costs. The airline falls under the country's sovereign wealth fund, Ethiopian Investment Holdings (EIH). EIH chief executive Mamo Mihretu released his summary of the year on Twitter:

He did add that the airline thrived, despite the global pandemic, without job losses and significant cancellations. He put that down to its "management agility and obsession in ensuring long-term cost leadership, proving the resilience of its strategy." Ensuring to give his operation some credit, Mihretu said:

"EIH encouraged ET [Ethiopian] to focus on improving capacity utilization, sustaining its customer centric culture and capabilities, monetizing current favorable market yields and becoming a leader in cargo service, and putting sustainability at the center of its operation."

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Another airline wins with cargo sales

Ethiopian Airlines 787 Aid
The airline can utilize its modern fleet of B787's, B777's, and A350's for cargo flights. Photo: Boeing

Passenger volumes grew by 36% to 6.9 million, although the real star was cargo which contributed around $2.95 billion, or 59% of total revenue. Ethiopian has a strong presence in the African cargo market and has a cargo fleet of 22 aircraft. According to ch-aviation.com, its cargo division has six Airbus A350-900s, nine Boeing B777-200Fs, one B777-300ER, four B737-800Fs and two De Havilland DHC-8-Q400s. The passenger fleet has 103 aircraft, the main types being Airbus A350, Boeing B787, B737 and Dash-8.

Established in 1945, Ethiopian is one of Africa's oldest airlines and the continent's largest carrier. It operates to around 141 destinations in 80 countries, serving 246 routes. Various sources say that EIH does not publicly release the airline's results, with the last financial report seen in June 2020. The International Air Transport Association (IATA) forecasted that African airlines would lose $700 million in 2022. In 2020 African airlines lost $10.21 billion, which improved to an $8.6 billion loss in 2021.

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Tough market

One airline not doing so well is Kenya Airways, which has made losses for nine consecutive years. Business Insider Africa reported the airline posted a loss of $82.4 million for the first half-year period ending June 2022 and is relying on loans and government bailouts to stay afloat. This certainly makes Ethiopian's profit of $937 million look even more noteworthy.

Source: FANA, Business Insider