Africa’s largest airline, Ethiopian Airlines Group posted a record $9.1 billion in revenue for the 2025–2026 fiscal year, up 20 percent from the previous period, even as rising fuel costs and regional conflict squeezed its margins. The state-owned carrier handled 20.7 million passengers during the 12-month period — a 10 percent increase. Cargo transport also rose, climbing 16 percent to 897,000 metric tonnes.

Yet operating costs surged 25 percent over the same period, driven by high jet fuel prices and detour routes forced by conflicts across the Middle East. Chief Executive Officer Mesfin Tasew declined to break out net profit figures during a media briefing in Addis Ababa on July 29, leaving market watchers guessing at the exact damage to the airline’s bottom line.

Ethiopian Airlines bets big on infrastructure

Despite the margin squeeze, the carrier added four international routes over the past year — including flights to Portugal, Vietnam and Abu Dhabi — while taking delivery of eight new aircraft. To keep pace with the growth, local authorities expanded Addis Ababa Bole International Airport, raising its annual capacity to 25 million passengers. Company officials admit that the upgrade is only a temporary fix for a hub already operating near its limits.

Instead, Ethiopian Airlines is placing its long-term hopes on a new airport in Bishoftu, roughly 25 miles southeast of the capital. Designed to handle 60 million passengers a year, the first phase of the megaproject is set for completion by 2030. Plans call for four runways, two passenger terminals, parking bays for 270 aircraft, a dedicated cargo hub, and full maintenance facilities.

At home, the airline is plugging remaining gaps in its regional route network. The government opened Negele Borena Geda Airport in the Oromia region in May, while commercial flights recently started at Gore Metu and Debre Markos. Equipment decisions will define the next phase of expansion. Tasew said the carrier will decide within weeks between the Boeing 777-8F and Airbus A350F for an order of 16 freighters, comprising eight firm orders and four options.

Airline nears 25-jet regional order

The airline is also closing in on a separate order for 25 smaller aircraft to run short-haul domestic and regional connections. That evaluation, which pits the Airbus A220 and Embraer E2 against Boeing’s 737 MAX 7, should wrap up in one to two months. The Boeing 737 MAX 7 remains under final review by the U.S. Federal Aviation Administration, with certification expected later this year.

The capital spending blitz aligns with the group’s Vision 2035 target: hitting $25 billion in annual revenue, building a fleet of more than 200 aircraft, and carrying 65 million passengers a year. To get there, the airline relies heavily on diversification, pouring money into aircraft maintenance, flight training, and cargo services to buffer against volatile passenger travel cycles.