Ethiopian Nets over Half a Billion Birr on the Year 2007/08 - 27 October, 2008

Ethiopian Airlines recorded outstanding results in many of its performance parameters during the fiscal year 2007/08. According to the financial reports released, Ethiopian generated 9.2 billion birr in operating revenue during the budget year, a 34% increase over that of the previous year. For the period in review and for the first time ever, a net profit of 507 million birr has been realized. During the same period, Ethiopian also transported 2.5 million passengers, an increase of 20% compared to that of the preceding year.

The substantial growth in revenue and the resultant operating profit are directly attributed to the apparent growth of traffic following the increase of many flight frequencies and the introduction of additional new destinations on the international sector. Revenues from cargo sales and other auxiliary services contributed to the overall financial performance of the company.

During the fiscal year under review, total operating expenses increased by 31% to 8.8 billion Birr in contrast to that of the previous year. Fuel cost represented the lion’s share followed by the cost of aircraft/engine leases and payroll expenses.

The major activities during the budget year, included:

  • Launching flight schedules and services to Zanzibar and Kuwait
  • Concluding of code share agreements with Lufthansa, Gulf Air, Air One & Brussels Airlines
  • Leasing additional passenger aircraft and two B747-200 freighters
  • The signing of an agreement with Boeing to acquire two MD-11 Freighter aircraft
  • Installing the B737-NG Simulator
  • Implementing on-line and e-ticketing
  • Completion of modern dormitory buildings for trainees of Ethiopian’s Aviation Academy.
  • The phasing out of one B767-200, one B737-200 and one DHC-6

In line with its vision 2010, Ethiopian developed extensive strategies for the enhancement of Human Resources, Cargo Revenue, Information Systems and the Domestic Services. Accordingly, Ethiopian Airlines has embarked on IT Business Transformation program investing over US$30 million for the project.

In July 2007, Ethiopian received the Gold Award from the Government of Ghana for its outstanding contribution towards the economic and social developments of Africa. Air Finance Journal based in New York also awarded Ethiopian the African Deal of the Year 2007. In addition, Ethiopian Airlines won the 2008 Corporate Achievement Award by the Nigerian Aviation & Allied Business for setting the pace and for its continued positive contribution towards the growth of the African aviation industry.

Consistent with its commitment to help and support the needy and deserving, Ethiopian Airlines has accommodated various requests from philanthropic and government agencies, as well as many private organizations in the countries where the airline operates. Such donations covered a wide range of programs, including but not limited to health, education, sports, women’s empowerment and the environment.

Despite the escalating fuel price and stiff competition, Ethiopian scored the highest revenue and a net operating profit of over half a billion birr. Customers and other stakeholders of the airline contributed to this great and indeed exceptional success, and its employees were, as always, at the forefront. The Management seizes this opportunity to express its appreciation to all concerned and calls for continued support in its future endeavors.

About Ethiopian

Ethiopian recently won the 2008 Corporate Achievement Award of Aviation & Allied Business for setting the pace and continued contribution towards the growth of African aviation industry.

Ethiopian Airlines, www.ethiopianairlines.com, one of the largest and fastest growing airlines in Africa made its maiden flight to Cairo in 1946. With the recent addition of new flight services to Ouagadougou and Lubumbashi, Ethiopian provides seamless services to 32 cities in Africa and to a total of 52 international destinations spread around the globe.

Ethiopian will be the first carrier to operate the 787 Dreamliner in Africa, the Middle East and Europe.