Ethiopian Airlines anticipates a significant surge in passenger numbers for the year ending June, marking a 30% increase over the previous year, according to the Chief Executive Officer, Mesfin Tasew Bekele, in an exclusive interview with The Southern African Times. This optimistic projection is attributed to the opening of new routes and the resurgence of global travel.
However, Africa’s largest airline is not without its challenges. Bekele highlighted concerns over delayed aircraft deliveries and the grounding of some planes due to engine shortages caused by disruptions in the supply chain. He emphasised, “We have a lot of challenges. For example, today we have aircraft shortage since the manufacturers, particularly Boeing, are delaying aircraft deliveries.”
The delivery delays predominantly affect narrow-body passenger jets from Boeing, while the grounding affects wide-body aircraft used for long-haul travel. Ethiopian Airlines currently operates a fleet of 146 Boeing, Airbus, and De Havilland planes, slightly below its ideal level of 150 due to these delays.
Despite these setbacks, Ethiopian Airlines remains confident in Boeing’s ability to address safety concerns. Bekele stated, “We believe that Boeing is in a good position to fix all these.”
Ethiopian Airlines has firm orders for 70 Boeing and Airbus planes and options to purchase 54 more, as part of its ambitious plan to double its fleet and route network by 2035. This growth strategy aims to significantly boost annual revenue and passenger numbers by 400% and 440% respectively by the target year.
The airline’s performance in the first nine months of its current financial year indicates progress towards its growth targets, with a 20% increase in revenue to $7.3 billion. Bekele outlined, “We are expanding our network and we’re increasing the frequencies on the existing network,” citing new destinations like London Gatwick, Madrid, and Bangui.
Additionally, Ethiopian Airlines is investing in its cargo business, including the launch of a $55 million e-commerce shipments handling facility at its Addis Ababa base in February. Bekele highlighted the rapid growth of the e-commerce business, particularly on the African continent, targeting firms like China’s Alibaba and others.
Despite the challenges posed by delayed deliveries and grounding of planes, Ethiopian Airlines remains steadfast in its growth ambitions, focusing on expanding its network, enhancing services, and capitalizing on emerging opportunities in the aviation sector.
