Ethiopian Airlines has reported another year of strong financial growth, with annual revenue rising 20% to US$9.1 billion, reinforcing its position as Africa’s largest airline and one of the continent’s most successful state-owned enterprises.
The airline said passenger demand, cargo operations and network expansion drove its performance during the 2025/26 financial year. Passenger numbers reached 20.7 million, while cargo volumes increased by 16% to approximately 897,000 tonnes, reflecting continued demand for both passenger and freight services.
The results come as African aviation continues to recover from years of disruption while positioning itself for long-term growth. Ethiopian Airlines has remained one of the few African carriers to consistently expand its international network, invest in modern aircraft and generate sustained profits.
Speaking as the airline released its annual results, Group Chief Executive Officer Mesfin Tasew said the performance reflected the company’s long-term strategy of investing in infrastructure, fleet modernisation and diversified aviation services. The airline also highlighted continued growth across its maintenance, cargo, training and airport services businesses.
Unlike many airlines that rely heavily on passenger travel, Ethiopian Airlines has built a business model that spreads revenue across several aviation sectors. Its cargo division has become one of the largest in Africa, serving global supply chains linking Africa with Europe, Asia, the Middle East and the Americas.
That diversification proved particularly valuable during the COVID-19 pandemic, when cargo operations helped offset losses from passenger travel. The strategy has continued to strengthen the airline’s financial position as international travel recovered.
The airline’s latest performance also reflects continued investment in expanding Addis Ababa’s role as one of Africa’s busiest aviation hubs. Addis Ababa Bole International Airport now connects travellers to more than 140 international and domestic destinations through Ethiopian Airlines’ network, making it one of the continent’s most important transit gateways.
To support future growth, the airline has already begun work on a new international airport near Bishoftu, southeast of Addis Ababa. The project, valued at approximately US$12.5 billion, is expected to become one of Africa’s largest aviation infrastructure developments when completed. The new airport is designed to accommodate growing passenger demand and expand Ethiopia’s role as a global aviation hub.
The airline’s expansion comes at a time when African aviation is undergoing significant change. Many national carriers continue to face financial pressure, ageing fleets and growing competition from airlines based in the Gulf, Europe and Asia.
While several African airlines have struggled to recover profitability, Ethiopian Airlines has continued to invest in new aircraft, digital services and route development. Industry analysts attribute much of that success to long-term planning, operational efficiency and a business model that extends beyond passenger transport.
The carrier has also strengthened partnerships with other African airlines through management agreements, technical support and joint ventures. Those collaborations have contributed to broader efforts to improve air connectivity across the continent.
Better connectivity has become increasingly important as the African Continental Free Trade Area (AfCFTA) encourages greater movement of people, goods and services between African economies. Airlines are expected to play a critical role in supporting trade, tourism and investment by improving access to regional and international markets.
Despite the strong results, the aviation industry continues to face challenges. Rising fuel costs, foreign currency shortages in some African markets, supply chain disruptions and aircraft delivery delays remain significant risks for airlines worldwide.
Competition is also intensifying. Gulf carriers continue to expand their presence across Africa, while several African governments are investing in their own national airlines and airport infrastructure.
For Ethiopian Airlines, maintaining growth will depend on balancing expansion with operational efficiency while continuing to invest in customer service, technology and infrastructure.
Ethiopian Airlines’ latest results demonstrate what sustained long-term investment can achieve in Africa’s aviation sector. Rather than focusing solely on passenger traffic, the airline has developed an integrated aviation business that combines passenger services, cargo, maintenance, training and airport operations.
Its continued expansion also reflects the growing importance of aviation to Africa’s economic development. Reliable air transport supports tourism, trade, manufacturing and investment by connecting businesses and communities across the continent.
As Africa works towards deeper economic integration under the AfCFTA, airlines capable of linking regional markets efficiently will become increasingly important. Ethiopian Airlines has positioned itself at the centre of that transformation, and its latest financial performance suggests it intends to remain there.
