The net profit of Ethiopian Airlines for the just ended Ethiopian financial year showed a decrease of 40% year on year. The
airline earned 732 million birr which is 500 million birr less than the 1.23 billion it had earned in the previous financial year.
Ethiopian Airlines transported 4.6 million passengers in the past year showing a 25% increase and generated operating revenue 0f 33.8 billion birr, an increase of 37%. The operating expense of the airline also increased by 35% to 5.7 billion birr resulting in the airline making operating profits of 1 billion birr and net profits of 732 million birr.
The increase in fuel prices, the European economic crisis and the economic stagnation in China and other Asian countries all proved to be challenges for the airline industry in the past year said Tewolde Gebremariam, Chief Executive of the airline.
Ethiopian was able to finish the year in the black unlike many other airlines and has also been able to give its employees an annual salary increment of 6-8 percent said Tewolde.The airline is still on the right track according to its Vision 2025 growth program and has plans to build a new cargo terminal and maintenance hangar alongside the 42 million US dollar expansion project on the aviation academy he noted.
It is to be remembered that Ethiopian has established a second hub in Togo, West Africa where its affiliate ASKY is based.
The airline has plans to establish two more regional hubs in Central and Southern Africa and to increase its existing fleet of 47 aircraft to 120 according to Tewolde.
The airline is also planning to increase the number of destinations it services to 90 and increase the volume of passengers it transports to 80 million with a corresponding growth of workforce to 17,000 he added.
Source: The Reporter
