Ethiopian Airlines Annual Profit Soars to $937m
Ethiopian Airlines Group’s management was hailed for their agility after the airline saw its annual profit soar to $937 million.
The airline’s 2021/22 fiscal year performance was a subject of Ethiopian Investment Holdings or EIH’s annual evaluation of portfolio companies.
Ethiopian airlines secured a $5 billion revenue in the financial year that ended two months ago.
The revenue jumped by 79 percent from the previous year, said Mamo Mihretu, Chief Executive Officer (CEO) of EIH on Tuesday.
its profit also grew by 90%, reaching $937 million, the CEO said, “despite the headwinds of worsening global economic outlook, rising fuel cost, (&) global pandemic.”
At the height of the Covid-19 crisis in 2020, the company’s revenue was seriously affected after the pandemic-related restrictions forced the airlines to suspend 91 of 110 passenger flights.
Its officials quickly turned their focus to cargo and charter operations to soften the blow. The move included refitting 38 passenger aircraft to join the airline cargo fleet to transport medical supplies globally. The decision, its officials, helped the airlines to end the 2020/21FY with a revenue of $3.51 billion.
‘Management agility key’
As demand for passenger services started to slowly recover last year, the company moved to balance its passenger and cargo businesses, reinstating 13 of the refitted planes to passenger service operation.
The Airlines transported 6.9 million international travelers during the 2021/22FY, showing 36% year on year increase.
“Ethiopian thrived despite global pandemic and without job losses and significant cancellation, thanks to its management agility and the airline’s obsession in ensuring long-term cost leadership, proving the resilience of its strategy,” EIH’s CEO Mamo said.
The airline is currently implementing a 15-year strategic plan called Vision 2025 with a view to becoming the leading aviation group in Africa in seven business units including international and domestic passenger as well as cargo and logistics services.
The airline says it commands the lion’s share of the pan African passenger and cargo network operating the youngest and most modern fleet to more than 130 international passenger and cargo destinations across five continents.
At the evaluation meeting, “EIH encouraged Ethiopian to focus on “improving capacity utilization, sustaining its customer-centric culture and capabilities, monetizing current favorable market yields and becoming a leader in cargo service, and putting sustainability at the center of its operation,” Mamo said in a tweet.
