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- Ethiopian Airlines plans to order 25 new narrow-body aircraft to expand domestic and regional operations.
- The airline is considering offers from Airbus, Embraer, and Boeing, focusing on the A220, E2, and 737 MAX 7 models.
- This fleet expansion supports Ethiopian Airlines’ long-term strategy to enhance connectivity within Ethiopia and across Africa.
- Rising fuel prices, caused by Middle East conflicts, have increased operating costs and forced the airline to reduce some services, like flights to Dubai.
Ethiopian Airlines is preparing for another major fleet expansion as Africa's largest carrier weighs an order for 25 new narrow-body aircraft to strengthen domestic and regional operations across the continent.
Ethiopian Airlines is preparing for another major fleet expansion as Africa's largest carrier weighs an order for 25 new narrow-body aircraft to strengthen domestic and regional operations across the continent.
The airline's Chief Executive Officer, Mesfin Tasew Bekele, said a decision is likely within the next three months as the company evaluates competing offers from Airbus, Embraer, and Boeing, Reuters reported.
Speaking on the sidelines of the International Air Transport Association (IATA) annual summit in Rio de Janeiro, Bekele said the airline is considering three aircraft models: the Airbus A220, Embraer's E2 family, and Boeing's 737 MAX 7, which is expected to receive certification from U.S. regulators later this year.
The planned acquisition forms part of Ethiopian Airlines' long-term growth strategy as it seeks to deepen connectivity within Ethiopia and across neighbouring African countries.
With a fleet of 147 aircraft, Ethiopian Airlines has become one of the world's fastest-growing airlines and remains the dominant force in African aviation.
Fuel costs cloud outlook
Despite its growth ambitions, Ethiopian Airlines is facing the same challenges confronting airlines globally.
The ongoing conflict in the Middle East has pushed fuel prices higher, significantly increasing operating costs for carriers around the world. Business Insider Africa earlier reported that the carrier reported weekly losses of about $137 million as a direct result of the crisis, driven largely by widespread cancellations.
Bekele revealed that Ethiopian Airlines is currently spending about 60% more on jet fuel than before the recent market disruptions. Fuel remains the largest single operating expense for most airlines and can account for up to a third of total costs.
The higher fuel bill has already forced adjustments to parts of the airline's network. Ethiopian Airlines recently reduced the frequency of flights to Dubai from three daily services to two as demand softened amid regional uncertainty. Even with those challenges, Ethiopian Airlines continues to outperform many global peers.
A race for Africa's skies
The aircraft order shows growing competition among manufacturers seeking a larger share of Africa's rapidly expanding aviation market.
Airbus has been aggressively promoting the A220, a fuel-efficient aircraft designed for regional and medium-haul routes. Embraer, meanwhile, has gained traction among airlines looking for smaller jets with lower operating costs. Boeing is seeking to strengthen its position through the 737 MAX 7, the smallest member of its MAX family.
The decision comes at a time when African air travel is expected to grow significantly over the coming decades. According to industry forecasts, Africa's passenger traffic is projected to more than double by 2040 as urbanisation, rising incomes, and increased intra-African trade drive demand for air travel.
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