How Ethiopian Airlines is challenging Africa’s aviation narrative through self-reliance

By Kelechi Deca Anyanwu

Ethiopian Airlines is challenging conventional assumptions about Africa’s capacity to build globally competitive institutions, demonstrating how strategic planning, financial discipline and investment in local expertise can transform a state-owned enterprise into a leading global aviation player.

In a commentary titled “Ethiopian: Narrative That Questioned Your Assumptions of Africa,” Kelechi Deca Anyanwu argues that the airline’s remarkable growth offers valuable lessons for African governments struggling to build sustainable national carriers.

He noted that while many state-owned airlines have struggled with mounting losses and dependence on government subsidies, Ethiopian Airlines has pursued a different path, combining state ownership with commercial autonomy and a profit-driven operating model.

The airline is wholly owned by the Ethiopian government through Ethiopian Investment Holdings, but operates with considerable managerial independence and a focus on financial sustainability.

According to Anyanwu, this approach has enabled the carrier to emerge as Africa’s largest and one of its most consistently profitable airlines, expanding from a regional operator into a global aviation group serving more than 160 destinations across five continents.

He cited the airline’s growth figures, noting that passenger numbers increased by 80 per cent over eight years, while cargo volumes rose by 97 per cent and annual revenue climbed by 120 per cent.

For the 2025/2026 financial year, Ethiopian Airlines reportedly transported 20.7 million passengers and generated $9.1 billion in revenue.

Anyanwu attributed the airline’s performance to institutional continuity, operational efficiency, strategic partnerships and sustained investment in technical expertise.

He explained that Ethiopian Airlines has developed a leadership pipeline that prioritises internal promotion, allowing executives to acquire extensive operational knowledge and maintain institutional continuity.

The airline has also adopted a multi-hub strategy to expand its reach across Africa through partnerships and investments involving carriers such as ASKY in Togo, Malawi Airlines, Zambia Airways and Air Congo.

These arrangements have enabled it to extend its continental footprint without bearing the full financial burden of establishing and operating wholly owned subsidiaries in every market.

Another pillar of its strategy, according to Anyanwu, is investment in technical capacity and human capital.

Ethiopian Airlines established its maintenance, repair and overhaul facility in 1957 and has developed aviation training institutions that produce pilots, engineers, technicians and management professionals.

The author argued that these investments helped the airline navigate the COVID-19 pandemic, when it converted 25 passenger aircraft into freighters within weeks to take advantage of cargo demand.

He noted that Ethiopian Airlines remained profitable in 2020, 2021 and 2022, even as several international carriers experienced severe financial difficulties, depleted their reserves and reduced their workforces.

Anyanwu also highlighted the airline’s ambition to develop the Bishoftu International Airport mega-hub, a project he described as evidence of Ethiopia’s determination to build aviation infrastructure on a scale capable of supporting long-term growth.

He said Ethiopian Airlines planned to finance about 30 per cent of the estimated $12.5 billion project from internal resources, while diversifying the remaining financing to reduce dependence on a single source.

The author contrasted this approach with the financing challenges confronting other African countries, including Nigeria, arguing that heavy reliance on borrowing could make it more difficult for national carriers to compete with airlines that generate substantial internal funds.

Ethiopian Airlines is also pursuing fleet expansion, including an order for 20 Boeing 787-9 aircraft, as part of a strategy to align capacity growth with operational efficiency.

Its Vision 2035 development plan targets a fleet of 271 aircraft and annual revenue of $29 billion.

Beyond its financial and operational achievements, Anyanwu identified the airline’s contribution to global aviation management as another measure of its institutional strength.

He cited former Ethiopian Airlines chief executive Tewolde Gebremariam, who led the carrier for more than a decade, as an example of the expertise developed within the organisation. According to the author, Gebremariam was subsequently approached to help steer Air India’s turnaround following significant financial losses.

He also referenced former Ethiopian Airlines executive Girma Wake, who was reportedly called upon by Uganda’s leadership to help address governance and operational challenges at Uganda Airlines.

Other former Ethiopian Airlines executives have taken up leadership positions in African carriers, including ASKY, Malawi Airlines and Zambia Airways.

For Anyanwu, these appointments demonstrate how investment in institutional capacity can produce aviation professionals whose expertise extends beyond the organisation that trained them.

He argued that Ethiopian Airlines’ ability to develop leaders with practical experience in fleet management, route planning, labour development and revenue optimisation has made its executives attractive to struggling airlines seeking sustainable turnarounds.

The author also criticised Nigeria’s handling of earlier efforts to establish a national carrier, arguing that the country missed an opportunity to benefit from Ethiopian Airlines’ experience and technical expertise.

He maintained that Nigeria could have drawn on the Ethiopian model to develop a commercially viable national airline, rather than allowing political considerations and alleged governance failures to undermine the initiative.

According to Anyanwu, the central lesson from Ethiopia is that state ownership does not automatically condemn an enterprise to inefficiency, provided management is empowered to operate professionally, financial discipline is enforced and long-term investments are protected from political interference.

He further argued that Ethiopian Airlines’ success was not accidental but the product of nearly eight decades of building institutional capabilities, investing in people and prioritising operational self-sufficiency.

The airline’s experience, he concluded, challenges the notion that African enterprises cannot compete globally without permanent government support, while offering a potential model for countries seeking to revive struggling national carriers and strengthen their aviation industries.