Ethiopian Scores High in its Nine Months Performance - 16 May, 2008
Ethiopian Airlines recorded strong results in many of its performance parameters during the nine months of the fiscal year 2007/08. Based on the preliminary reports, Ethiopian generated 6.6 billion birr operating revenue during the nine months which is 29% up from last year. A net profit of 484 million birr is recorded for this period which is appreciably higher than the same period last year. Ethiopian transported 1.9 million passengers, a 19% increase as compared to the previous year. “This performance was achieved as a result of the hard work and dedication of Ethiopian employees, astute leadership of the management team, the strong support from the Airline’s customers and other stakeholders,” said Ato Girma Wake, Chief Executive Officer (CEO) of Ethiopian.
The substantial improvements in revenue and traffic growth were attributed mainly due to the apparent capacity growth in terms of increased frequency, introduction of new flights on the international sector, from cargo revenue as well as other service categories.
The total operating expenses during the nine months increased by 21%. Fuel cost representing the lion’s share was followed by aircraft/engine lease and payroll expenses. The CEO, Ato Girma Wake noted, "Fuel price remains of concern to the industry as a whole and Ethiopian believes that costs will continue to escalate into the next quarter given the present trend in price of fuel."
The major activities during the nine months of the budget year included:
- Leasing one B757-200 passenger aircraft
- Launching service to Abu Dhabi and Zanzibar
- Implementation of Codeshare agreement with Gulf Air and Air One
- Signing an agreement with Boeing to acquire two MD-11 Freighter aircraft
- Leasing two B747-200 freighters pending the delivery of the MD-11s
- Entering into partnership with Lufthansa on Frequent Flyer Programme
- Installing B737-NG Simulator
Despite the escalating fuel price and stiff competition, Ethiopian scored the highest revenue and profit ever. All stakeholders of the airline contributed to this success and its employees were at the frontline. Ethiopian management takes this opportunity to express its appreciation to all the stakeholders.
About Ethiopian
Ethiopian Airlines, www.ethiopianairlines.com, one of the largest and fastest growing airlines in Africa made its maiden flight to Cairo in 1946. The airline currently serves 50 destinations around the globe, 30 of which are in Africa. The addition of services to Kuwait effective June 02, 2008 will bring the total number of the Airline’s international destinations to 51.
Ethiopian will be the first carrier to operate the Dreamliner-B787 in Africa, the Middle East and Europe.
In 2006 and 2007 Ethiopian has earned three different awards respectively from the African Aviation Journal, the African Times/USA, and the Government of Ghana for its best performance in the commercial air transport industry.
