Ethiopian Airlines Group is preparing to order 25 smaller commercial jets within the next three months, moving quickly to expand its regional network after posting $4.4 billion in revenue for the first half of its 2026 financial year.

CEO Mesfin Tasew Bekele disclosed the pending fleet expansion Saturday on the sidelines of the International Air Transport Association annual summit in Rio de Janeiro. The state-owned carrier, which is already Africa’s largest airline with 147 aircraft, is currently evaluating the Airbus A220, the Embraer E-2, and the Boeing 737 MAX 7.

The new planes will serve domestic routes and neighboring African countries. While Bekele noted that some unresolved issues remain before the airline can finalize the contract, he expressed confidence in a quick decision. The Boeing 737 MAX 7 model under consideration is expected to receive certification from the U.S. Federal Aviation Administration later this year.

Navigating shifting demand and rising expenses

The carrier is weighing its options at a time when the Airbus A220 program continues to face financial losses and aggressive competition from Brazil’s Embraer. Beyond manufacturing delays, Ethiopian Airlines is grappling with broader operational pressures. High fuel prices have changed the math for regional carriers, driven largely by ongoing conflict in Iran.

In response to shifting passenger demand, the airline has scaled back some operations in the Middle East. For instance, Bekele said daily flights to Dubai have been cut from three to two. Across its entire network, the carrier is paying roughly 60 percent more for jet fuel than it did during the same period last year.

Although fuel prices remain a major worry for management, Bekele confirmed that previous supply disruptions have been resolved. He told reporters that the company secured its fuel supply chain, turning its full attention to managing the high energy costs that continue to weigh on the industry’s financial performance.

Regional expansion follows record revenue growth

The push into regional markets follows a highly profitable six months for the state-owned aviation group. The airline’s $4.4 billion first-half revenue represents a 14 percent increase over the same period last year, a financial performance that surpassed internal company targets. When adjusted for inflation, that revenue figure matches $4.5 billion.

Operational volume supported those financial gains. The airline carried 10.64 million passengers on domestic and international routes during the six-month period. Its cargo division also showed significant volume, moving 451,000 tonnes of freight and solidifying the capital city of Addis Ababa as a primary logistics hub for the African continent.

Ethiopian Airlines targets $25 billion revenue vision

The airline is tracking toward its long-term Vision 2035 corporate strategy, which aims to diversify income across passenger services, cargo, maintenance training, and airport management. The group wants to transport 65 million passengers and 3 million tons of cargo annually by 2035, aiming for $25 billion in annual revenue.

To support this growth, the carrier has been aggressive in the aircraft market. In January, the company signed a deal for nine Boeing 787-9 Dreamliners for delivery between 2031 and 2033. That purchase followed a Dubai Airshow order for 11 Boeing 737 MAX jets, adding 20 efficient planes to its order book.

The airline currently flies the largest Dreamliner fleet on the continent, deploying 787-8 and 787-9 models on long-haul routes to Europe, Asia, and North America. Ground infrastructure is also expanding, with plans underway for the Bishoftu International Mega Airport City to increase long-term passenger capacity and handle higher flight volumes.