Ethiopian Airlines CEO expects passenger numbers to increase this year

Ethiopian Airlines expects passenger traffic to grow sharply, driven by route expansion and a recovery in global travel, and expects a 30 percent increase in the fiscal year to June, the airline's chief executive said in a statement to Reuters.

Despite being Africa's largest airline, it continues to face challenges, including delays in aircraft deliveries and aircraft groundings due to engine shortages caused by supply chain disruptions. In particular, Boeing's delayed delivery of narrow-body airliners and grounding of wide-body airplanes used for long-haul travel have created significant operational hurdles.

Ethiopian Airlines, which carried 13.9 million passengers in the fiscal year ending June 2023, does not operate a retrofit of the Boeing MAX jets that suffered a panel explosion earlier this year, Mesfin said.

"We believe Boeing is capable of solving all these problems," he said. The company has identified 70 Boeing and Airbus planes for purchase, with options for 54 more, as part of a plan to double its fleet and route network by 2035.

In the first nine months of the current fiscal year, Ethiopian Airlines has made promising progress in achieving its growth targets, with passenger numbers showing progress, and the growth plan is expected to result in a 400 percent increase in annual revenue and a 440 percent increase in passenger numbers by the target year.

Mesfin said Ethiopian Airlines' passenger numbers in the first nine months of the current fiscal year indicate that the airline is on track to meet its growth targets for the year, which include a 20 percent increase in revenue to $7.3 billion.

"We are expanding our network and increasing frequencies on our existing network," he said, citing that the airline's expansion strategy includes introducing new destinations such as London Gatwick, Madrid, and Bangui while increasing frequencies on existing routes.

It is also investing in its cargo operations, notably launching a $55 million e-commerce cargo handling facility in Addis Ababa to meet the growing demand for e-commerce services across the continent.

Mesfin said the airline is also investing in its cargo business, including the launch of a $55 million e-commerce cargo handling facility at its Addis Ababa base in February this year, targeting companies such as China's Alibaba.

"The e-commerce business is growing now, faster than ever," he said, referring to demand on the African continent.