Ethiopian Airlines Plans New Aircraft Orders Amid Rising Fuel Costs
Ethiopian Airlines is preparing to make decisions on acquiring new regional and cargo aircraft despite facing significant increases in fuel costs. The airline, which operates to over 10 destinations in the Gulf and Middle East, had to suspend flights during the onset of the Iran war, leading to a loss of traffic. Although flights have resumed to 90% of the schedule, traffic remains low. Ethiopian Airlines Group CEO Mesfin Tasew highlighted that the long-term impact of the Middle East conflict has been the surge in fuel prices. Initially, Ethiopia faced fuel supply challenges, but these have been resolved by diversifying fuel sources, including contracts with suppliers in Nigeria and Saudi Arabia. The airline's fuel costs have risen from 40% to 54% of total expenses, prompting cost-cutting measures, route rationalization, fare increases, and a fuel surcharge. Despite these challenges, Ethiopian Airlines remains profitable and is evaluating additional aircraft from manufacturers like Airbus, Boeing, and Embr... 
