Ethiopian Airlines: The African carrier that swims against the tide of losses

As African airlines continue to face recurring crises ranging from liquidation and restructuring to fleet downsizing, Ethiopian Airlines remains a “successful exception” in the continent’s skies, with ongoing fleet and network expansion, strong financial results, and a massive airport project aimed at turning Ethiopia into Africa’s largest aviation hub.

In the 2024/2025 fiscal year, the state-owned carrier announced revenues of $7.6 billion, an 8% increase over the previous year, and carried 19 million passengers, up from 17 million the year before — despite the impact of conflicts in Sudan, the Middle East, and the Democratic Republic of Congo on air traffic in the region. These figures reinforce Ethiopian Airlines’ position as Africa’s largest carrier in terms of revenue and network size.

The airline now operates a fleet of more than 160 modern aircraft, including Boeing 787s and 777s and the Airbus A350, and continues to expand it. In November 2025, it announced a commitment to purchase 11 additional Boeing 737 MAX aircraft, a deal aimed at strengthening its regional and international network and bolstering its Addis Ababa hub. The carrier is also adding more A350-900 and A350-1000 aircraft as part of its long-term fleet modernization and expansion plan.

Ethiopian Airlines’ success goes beyond financial performance. The airline has built an integrated ecosystem of subsidiaries and regional partnerships, including stakes in airlines in Malawi, Zambia, Guinea, and Togo. It is also a major shareholder in ASKY Airlines, which serves West and Central Africa, giving Ethiopian a physical presence across the continent that extends well beyond its Addis Ababa hub.

The company is also investing in hospitality and tourism services through the Ethiopian Skylight Hotel, located next to Addis Ababa’s Bole Airport. Fully owned by the airline group, the large hotel complex accommodates transit passengers and flight crews, enhancing the travel experience and supporting the carrier’s “hub-and-spoke” model.

The biggest transformation on the horizon is the new Bishoftu International Airport, about 45 kilometers southeast of the capital. Expected to be completed by 2029, the airport is designed with four runways and a capacity of up to 100 million passengers annually once fully built, making it Africa’s largest airport and one of the largest in the world. The African Development Bank has pledged $500 million toward the project’s estimated $10 billion cost, with Ethiopian Airlines contributing around 20% of the financing and the remainder to be covered by other lenders.

Aviation analysts say the airline’s standout performance is the result of a mix of long-term strategic planning, early investment in a modern fleet, leveraging Addis Ababa’s location as a crossroads between Africa, Asia, and Europe, and relatively stable government support compared to many African countries. Industry reports note that Ethiopian Airlines “swam against the tide” in the post-COVID period, expanding its network and keeping costs under control while other carriers downsized or required government bailouts.

Despite its impressive performance, challenges remain. Like airlines worldwide, it faces engine maintenance bottlenecks that have grounded some aircraft, along with increasing competitive pressure from Gulf, Asian, and resurgent African carriers — such as Etihad Airways’ return to the Ethiopian market with a new daily Abu Dhabi–Addis Ababa service.

Still, Ethiopian Airlines today stands as an exceptional case in Africa’s skies: a profitable state-owned airline that is expanding its fleet, building a massive new airport, and offering a different model of what national carriers on the continent can achieve when supported by a clear vision, relatively independent management, and long-term investment in infrastructure and human capital.