Ethiopian Airlines, Ethiopia’s flag carrier, was able to earn record operating revenues registering a growth of 50.4% in the first
two quarters of the financial year according to Tewolde Gebremariam, Chief Executive Officer of the Airline.
The higher earning of the airline enabled it to absorb the 55% in increase and remain profitable in spite of a declining profit margin said Tewolde.
The growth registered by Ethiopia from July 8-Janury 9, the first six months of the Ethiopian financial year, is remarkable he said.
Ethiopian Airlines was able to maintain profitability in the face of soaring expenses associated with high fuel prices in particular, the Euro zone sovereign debt crisis, a slow down in the economic growth of emerging markets and a weak American economy which have all contributed to the detriment of the aviation industry explained Tewolde in a letter addressed to airline employees.Fuel costs make almost 50% of total costs at the present time explained Tewolde.
Ethiopian has opted to expand operations in the face of all the challenges and has put into effect a 20% general increase on the salary scale as of January 1st he noted.
The airline registered growth in the past six months as part of its strategy of profitable and sustainable growth said Wogayehu Terefe, Manager of Public Relations and Publications with the Airline.
It is to be remembered that Ethiopian Airlines was named the most profitable airline in Africa by Air Transport World in 2010.
Source: Waltainfo
