Despite mounting operational hurdles across the Middle East and Central Africa, Ethiopian Airlines Group recorded a 20% jump in revenue to $9.1 billion for the 2025/26 financial year.
The state-owned carrier, Africa’s largest by fleet size and network reach, demonstrated strong commercial momentum. However, group leadership also revealed that a sharp rise in operational expenses has increasingly compressed margins, driven by geopolitical instability, rerouted flight paths, and volatile fuel costs.
The top-line revenue expansion was propelled by heavy investments in capacity and route diversification. During the fiscal year ending June 30, 2026, the group expanded its international footprint with major additions, including direct connections to Vietnam, Portugal, and Abu Dhabi. It also added three new domestic destinations, expanding its internal network to 25 cities.
Cargo operations served as a critical financial buffer. Transporting nearly 900,000 tons of goods, the freight division capitalized on shifting supply chains and export growth out of the Addis Ababa hub, outperforming management’s original targets.
Expenses Surge as Regional Crises Pinch Operations
Speaking at a press briefing at the Ethiopian Skylight Hotel in Addis Ababa, CEO Mesfin Tasew noted that operational costs grew by 25%, outstripping revenue growth.
“The Middle East crisis has affected our operations through increased costs and a reduction in passenger numbers,” said Mesfin.
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Three primary headwinds drove up costs and squeezed schedules during the period, according to the CEO.
First, conflict in the Gulf and Levant forced aircraft onto longer, circuitous routing, inflating fuel consumption, flight hours, and crew expenses while dampening regional transit demand.
Second, regional health outbreaks, including an Ebola outbreak in the Democratic Republic of Congo, weighed heavily on key intra-African passenger flows.
Lastly, local currency adjustments pushed up the domestic valuation of dollar-denominated expenses, pushing total operational outlay above 1.4 trillion Birr.
In line with long-standing company policy, Ethiopian Airlines deliberately withheld net profit and EBITDA figures. Addressing inquiries on the matter, CEO Mesfin Tasew explained that releasing standalone profit numbers without full global context can distort market perceptions among investors and international partners.
Looking ahead, management remains bullish on long-term prospects. With an additional order of widebody aircraft locked in and decisions pending for smaller regional jets, the carrier has set an aggressive $10 billion revenue target for the 2026/27 financial year.
