State-owned Ethiopian Airlines reported full-year 2025/26 revenue rose 20% to $9.1 billion, driven by cargo and passenger growth, even as soaring jet fuel prices and Middle East conflicts compressed profit margins and weighed on international operations.
Africa’s largest aviation group closed its financial year on June 30 with record revenue of $9.1 billion, or more than 1.4 trillion birr at current exchange rates, according to the Ethiopia News Agency and the airline’s executive leadership. The carrier transported 20.7 million passengers during the period, marking a 10% increase from the prior year across its network of more than 150 aircraft.
Cargo Growth and Network Expansion Offset Regional Pressures
Cargo operations remained a vital financial pillar for the carrier as global trade routes shifted. The airline transported 897,000 metric tons of freight during the year, exceeding its internal target by 16%. Alongside freight gains, the airline’s quoted statement outlined an aggressive fleet and route expansion strategy that added aircraft over the course of the financial year, alongside expanded facilities at Addis Ababa Bole International Airport.
The carrier launched four new international routes during the year, adding services to Portugal, Vietnam, and Abu Dhabi. Domestically, Ethiopian Airlines increased its local destinations from 22 to 25 by opening new routes to Yabelo and Negele Borena. Fleet development also moved forward on multiple fronts. The carrier signed an agreement in April to buy six additional Boeing 787-9 Dreamliner jets for long-haul services, while evaluating a separate order for 25 smaller commercial aircraft—weighing the Airbus A220, Embraer E2 family, and Boeing 737 MAX 7—with a final decision expected within three months.
Geopolitical Conflict and Surging Fuel Costs Press Margins
Despite top-line revenue growth, operating expenses jumped 25% over the same financial period. Speaking at a press briefing in Addis Ababa, Chief Executive Officer Mesfin Tasew pointed directly to international disruptions as the primary driver of the cost pressures.
The conflict in the Middle East and related airspace disruptions restricted flight operations and weakened customer demand, particularly on routes serving the Gulf. The company’s quoted statement noted that Addis Ababa-Dubai service was scaled back from three daily flights to two following the drop in demand. At the same time, jet fuel prices in Addis Ababa nearly doubled, pushing average global network fuel costs up by roughly 60%. Fuel now accounts for more than half of the airline’s operating expenses, rising from approximately 40% previously.
Broader Industry Headwinds and Financial Disclosures
The regional pressures facing Africa’s biggest carrier mirror wider global distress across commercial aviation. The International Air Transport Association released projections showing collective airline fuel bills rising to about USD 350 billion in 2026, up from roughly USD 252 billion in 2025. International Air Transport Association Director General Willie Walsh pointed to soaring jet fuel and Gulf corridor disruptions as the twin engines of industry strain.
“There are two major factors, One is the significant increase in jet fuel prices, which has gone way higher than anybody would have expected, and then the disruption to the airlines in the Gulf region.”
Willie Walsh, Director General, International Air Transport Association
While Ethiopian Airlines expects to remain profitable, Mesfin noted that profit margins could be cut by about half compared with earlier expectations. The state-owned group maintained its policy of withholding net profit figures and metrics like EBITDA from public reports.
Mesfin explained that publishing profit metrics without detailed context risks distorting investor perceptions of the group’s financial performance. Financial reporting from state media also noted that performance faced supplementary headwinds from flight cancellations caused by conflict in the region alongside the Ebola outbreak in the Democratic Republic of Congo.
Outlook and Targets for the Coming Year
Looking ahead, Ethiopian Airlines set an ambitious revenue target of 10 billion US dollars for the next financial year. The carrier plans to lean on ongoing cargo strength, selective route adjustments, and capacity growth to absorb elevated operational expenses.
While industry bodies forecast that global airline net profits will contract sharply in 2026 down to USD 23 billion amid higher fuel bills and slowing capacity growth, Ethiopian Airlines continues to prioritize scale. By balancing network connectivity on vital lower-yield routes against fleet renewal, Africa’s largest airline aims to navigate lingering geopolitical friction while pushing toward its ten-billion-dollar milestone.
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