Ethiopian Airlines anticipates reduced profit margins due to rising fuel costs and Middle East tensions
via The Reporter Ethiopia3 min read
Ethiopian Airlines expects its profit margins to decrease this year, primarily due to escalating jet fuel prices and weakened demand on certain routes. CEO Mesfin Tasew stated that fuel now constitutes over half of the airline's operating expenses, up from approximately 40 percent. Jet fuel prices in Addis Ababa have nearly doubled, and average fuel costs across the airline's global network have increased by about 60 percent. This has led to a reduction in the Addis Ababa-Dubai service from three to two daily flights. Despite these challenges, Africa鈥檚 largest airline anticipates remaining profitable, though profit margins could be halved compared to earlier projections. The Ethiopian Airlines Group reported USD 4.4 billion in revenue during the first half of the 2025/26 fiscal year. The airline is also evaluating an order for approximately 25 smaller commercial aircraft, considering the Airbus A220, Embraer E2 family, and Boeing 737 MAX 7, with a decision expected within three months. This fleet expansion aims to replace older jets and enhance domestic and regional operations. These developments align with broader industry challenges; the International Air Transport Association IATA recently lowered its 2026 airline profitability forecast, citing rising fuel costs and geopolitical disruptions in the Middle East. IATA projects the industry's collective fuel bill to reach about USD 350 billion this year, up from USD 252 billion in 2025, with fuel accounting for nearly one-thir
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This summary was AI-generated from a story originally published by The Reporter Ethiopia.
The National Bank of Ethiopia NBE has reconfirmed its prohibition on the use, trading, and transfer of virtual assets, including cryptocurrencies, unless explicitly authorized by the NBE. The central bank issued a public notice defining virtual assets as digital representations of value that can be electronically traded, transferred, exchanged, or used for payments, investment, or similar purposes. The ban covers the purchase, sale, exchange, transfer, trading, settlement, and facilitation of transactions involving these assets without specific approval under Ethiopia's legal framework. The NBE clarified that the prohibition extends beyond just cryptocurrencies to all virtual assets. Prohibited activities include exchanging virtual assets for fiat currencies or other virtual assets, transferring them, providing custody or administrative services, and offering financial services related to their issuance or sale. The NBE warned the public against engaging in such transactions due to legal and financial risks, including fraud, scams, cyberattacks, market manipulation, and significant financial losses. This statement reiterates existing legal restrictions and does not announce new regulations or enforcement measures.
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