Ethiopian Airlines, Africa's leading carrier, announced an annual revenue of $9.1 billion for the 2025/2026 Ethiopian fiscal year, ending July 7. This represents a 20% growth compared to the previous fiscal year, with passenger numbers increasing by 10% to 20.7 million and cargo freight rising 16% year-on-year to 897,000 metric tons. The airline attributed its strong performance to robust results in the first nine months of the fiscal year. To support this growth, Ethiopian Airlines expanded its fleet by nine aircraft and acquired eight pilot training aircraft, while also adding four new international routes and increasing domestic destinations from 22 to 25. The airline plans to buy six additional Boeing 787-9 Dreamliner jets for long-haul services and is continuing to expand infrastructure at Addis Ababa Bole International Airport, including the domestic terminal, passenger lounges, cargo terminal, and data center. This information comes from apanews.net.
Despite this strong financial performance, Mesfin Tasew, group CEO of Ethiopian Airlines, indicated that the airline's financial performance was negatively affected by flight cancellations due to conflicts in the Gulf region, U.S. travel restrictions, and the suspension of services to the Democratic Republic of Congo. These challenges, particularly the Iran war and its impact on jet fuel prices and supply chains, are expected to lead to slower revenue growth in the future. The African Airlines Association (AFRAA) warns that the Iran war is straining African airlines, driving up jet fuel prices by as much as 80% for some carriers, like those in Nigeria, and increasing operating costs significantly. Jet fuel now accounts for 40% to 45% of total operational costs, up from 30% to 35% previously. The closure of the Strait of Hormuz, a critical global energy corridor, at the start of the war in February, caused global crude prices to skyrocket past $100 per barrel. This information comes from thepinnacleng.com and audacy.com.
African airlines were already paying about 17% more for jet fuel than the global average before the Iran war. The new price pressures are exacerbating already thin margins across the sector and exposing the continent's heavy dependence on imported refined jet fuel. Supply disruptions have caused concerns at major hubs like Nairobi and Addis Ababa, and fuel shortages have emerged in countries including Kenya, Ethiopia, and Zambia. In response to these challenges, some airlines have begun adjusting networks, cutting frequencies, and reviewing routes, while also introducing fuel surcharges, though most cannot pass on the full cost increase to passengers without affecting demand. There is a renewed call for Africa to strengthen domestic refining capacity and reduce reliance on imported jet fuel. Projects like Nigeria's Dangote Refinery are becoming increasingly important; it is now supplying refined fuel to countries like Kenya, Ethiopia, and South Africa, with South Africa seeking a 12-month contract. This information comes from audacy.com, bloomberg.com, and bloomberg.com.
