CEO Speaks: Inside Ethiopian Airlines’ Soaring Profits, Boeing Deal, and $5B Airport Project

Ethiopian Airlines is moving full steam ahead with its ambitious plans to reshape African aviation, with a new airport project near Addis Ababa set to become the continent’s largest.

Speaking to the BBC’s Julki Ryungi, CEO Mesfin Tasew, confirmed that construction of the $5 billion mega facility will begin by the end of November 2025, with Phase One expected to be completed by 2029.

The new airport will be built in two phases and is projected to have an eventual annual capacity of 110 million passengers, dwarfing the current capacity of Bole International Airport, which is now stretched at 25 million. The first phase will handle up to 60 million passengers annually.

Ethiopian Airlines is moving full steam ahead with its ambitious plans to reshape African aviation

“The existing airport has served us well, but it can no longer support our rapid growth,” Tasew said. “This new facility will position Ethiopia as the undisputed aviation hub for Africa.”

The development will displace approximately 2,500 farming households across 3,500 hectares of land. According to Tasew, the airline is constructing residential homes and income-generating facilities, including agro-processing and trade centers, to resettle and support the affected communities. “Relocation is expected to be completed by November,” he added.

Revenue Growth and Strategic Goals

Ethiopian Airlines, one of Africa’s most profitable carriers, is closing in on its long-term financial ambitions. Back in 2010, the airline set a bold target of reaching $10 billion in annual revenue by 2025. While it fell short of that mark last year, reporting $7 billion in 2023/24, Tasew said the airline expects to hit $8 billion by June 2025.

“In terms of fleet size, number of destinations, and overall network, we have already achieved the targets set in our Vision 2025 plan,” the CEO said.

High Ticket Prices & Operational Costs

Despite expanding its footprint across Africa — including partnerships with national carriers in Malawi, Togo, and Zambia —  the Ethiopian Airlines CEO spoke on the ticket prices. Tasew attributed these costs to the fluctuating fuel prices, taxes, and ground handling fees across African countries.

Ethiopia has signed an agreement for the design of a new four-runway airport that will be Africa’s biggest when construction is completed in 2029.

“Fuel costs in Africa are significantly higher than in regions like the Middle East and Europe,” he explained. “These challenges push up operational costs, which inevitably affect airfare pricing.”

Renewed Boeing Partnership Despite Past Controversies

Ethiopian Airlines made headlines recently with its order of up to 67 Boeing aircraft, a move that surprised many given the lingering concerns from the 2019 Boeing 737 MAX 8 crash that claimed 157 lives. At the time, reports emerged that warnings from the airline’s chief pilot were ignored by Boeing.

However, Tasew said the relationship between the two companies remains strong and multifaceted.

“We don’t just buy Boeing planes. We also manufacture selected aircraft parts here in Ethiopia that are supplied to Boeing for the production of new aircraft,” he said, underscoring a strategic partnership that extends beyond purchasing.

Regional Aviation Landscape

According to a 2024 African Airlines Association report, Cairo International Airport in Egypt remains Africa’s busiest airport, handling nearly six million passengers in Q1 2024, followed by Johannesburg’s OR Tambo and Addis Ababa’s Bole Airport in third place.

Tasew said the relationship between Ethiopian Airlines and Boeing remains strong and multifaceted

With the planned mega airport, Ethiopia hopes to take the lead in the continent’s air traffic rankings.