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Ethiopian generates record revenue of over 9.5bln birr

Saturday, 19 July 2008

Girma Wake Flag carrier holding talks to enter code-sharing agreement with US airlines By Hayal Alemayehu Ethiopian Airlines generated a record revenue of over 9.5 billion birr during the just-ended Ethiopian budget year, Girma Wake, chief executive officer (CEO) of the airlines, told the Reporter on Wednesday. The revenue generated amounted close to what the airlines forecast for the year 2010, while it stood the highest in the history of the 62-year-old flag carrier. Likewise, the number of passengers the airlines carried during the reported year increased by over 20 percent to hit over 2.5 million, the CEO said. The airlines record high results in every aspect of its performance parameters were mainly attributable to the increase in traffic and the expansion of fleet, coupled with the dedication of the staff, according to the CEO. In its first nine-month performance of the report the airlines had netted a record profit of 484 million birr. Profits secured during the last quarter of the financial year, however, were not that high owning to the spike in oil prices, according to the CEO. Nonetheless, the profit secured during the reported year again stood at a record high in the airlines' operation history. “I can not say the exact amount Ethiopian secured in net profit during the financial year as the books have yet to be closed,” the CEO said. “It will, however, be a record high for the airlines.” The airlines, which currently is expanding its air cargo service, had, however, to lose millions of dollars from its air cargo operation owing to the spike in oil prices. “The mode of the air cargo expansion we launched recently is new to Ethiopian Airlines. In fact, if the fuel prices during the financial year were at their level of the previous year, the air cargo service would have made profit,” the CEO said. “The cargo service expansion will gradually start paying off and we consider the present loss as an investment.” Ethiopian, which maintains and is capitalizing on its stronghold networks in Africa, is also expanding its reach globally by establishing an alliance with major world carriers such as Lufthansa and South Africa Airways. Presently, the airlines is holding to with United Airlines, the flag carrier of the United States, to establish a code-sharing agreement between the two airlines, according to the Ethiopian Airlines CEO. In order to enhance its performance, including its domestic service, Ethiopian has invited two international aircraft manufacturers, namely Bombardier of Canada and ART of the French-Italy manufacturer, which were short-listed amongst six companies which contested to win the bid. Ethiopian Airlines currently maintains 51 international and over 15 domestic destinations with a total current fleet of 32 aircraft. Ethiopian revenue and traffic forecast for the current Ethiopian fiscal year stands at 11 to 12 billion birr and 2.9 million passengers, respectively, according to the CEO.

 

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