Ethiopian Airlines Generates $4.2 Billion Revenue

The state-owned Ethiopian Airlines Group made a total profit of 8.9 billion birrs ($326 million) before tax.

The Ethiopian Airlines Group made the revenue from transporting passengers and goods as well as providing other services by its group's companies such as training, catering among others. This is according to a report done by the Ethiopian Public Enterprises Assets and Administration Agency, which evaluated the performance of the Group.

The report shows that from the total revenue the company generated, $3.9 billion is collected in hard currency from international customers.

During the current Ethiopian year which started on July 8, 2019, Ethiopian Airline Group has planned to collect total revenue of 155 billion birrs which is about $5.7 billion. It also stated that the group aims to report a gross profit of 19 billion birrs which is about $696 million at the end of the year - July 7, 2020.

In a press statement released early this year by the Ethiopian airlines, it said that in less than a decade, Ethiopian Airlines has tripled the size of its fleet. It indicated that the airline now has 113 Boeing, Airbus and Bombardier aircraft flying to 119 international destinations in five continents.

The airline boasted of having tripled its passenger volume to flying more than 11 million passengers annually. This is despite it being one of the youngest fleets in the industry with their average fleet age being five years.

This comes after the Ethiopian government announced its plans to partially privatize Ethiopian Airlines Group, Ethiopia shipping lines, Ethio telecom and other big state enterprises including railways and electric services, among others. This is in a liberalization program meant to boost the country's' economic growth.

Majority stakes will be held by the state while shares in Ethio Telecom, Ethiopian Airlines, Ethiopian Power and the Maritime Transport and Logistics Corporation will be sold to both domestic and foreign investors.

The decision to liberalize the economy and privatize state-owned companies in aviation, banking and telecommunications, is part of reforms by Abiy Ahmed, the Prime Minister. This is as Ethiopia seeks to spur its growth and development by attracting more foreign direct investments.

See What Everyone is Watching

More From: The Exchange

Don't Miss

AllAfrica publishes around 700 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.