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Ethiopian Airlines Scores High with its Mid-Year Financial Performance
March 20, 2009
In the first half of the fiscal year 2008/09, Ethiopian Airlines registered higher revenues and profits compared to its performance during the same period of the previous year. Based on the preliminary reports, Ethiopian generated 6.7 billion birr in operating revenues for the period in review, representing an increase of 54.8% over the six months result of 2007/08 budget year. A net profit of 515 million birr is also recorded for this period which is 9% higher than the results of the same period (July-December) last year.
Ethiopian transported 1.5 million passengers, a 19% growth in contrast with that of the first six months of the preceding year. It also carried 55 thousand tons of freight, up by 101% from the previous year’s six months performance. According to Ato Girma Wake, the Chief Executive Officer of Ethiopian, “The first half of 2008/09 was another successful period for the national carrier despite the numerous challenges we had to deal with, and today Ethiopian remains optimistic that its performance will be sustained going forward, considering the strategic cost reduction efforts and improved operating procedures we have put in place.”
The increase in revenue is mainly attributed to the growth in traffic, which was stimulated by the increase of frequencies, the introduction of new flights on the international sector, the augmentation in cargo revenues, and the strategic steps taken to streamline operational as well as marketing activities.
The major activities during the six months of the budget year 2008/09 included:
* Leasing of one B757 passenger aircraft.
* Purchase of two MD-11 freighters.
* Purchase of eight Bombardier Q-400 NextGen turboprop aircraft for the domestic operations.
* Completion of the design for the B787 simulator building and additional maintenance hangar.
* Launching of new services to Ouagadougou, Lubumbashi and Abuja.
* Continued recruitment and employment of additional human resources in the face of the industry’s downturn environment.
Despite the impact of high fuel prices during the first few months of the period in review which was followed by the global economic crisis and stiff market competition, Ethiopian achieved a substantial amount of revenues and profits; and all stakeholders of the airline contributed to this success while its employees were, as always, at the forefront. Ethiopian’s management team takes this opportunity to express its appreciation to its loyal customers, employees and all other stakeholders.
The prevailing global recession has caused steep decline in demand for passenger and air cargo traffic. Accordingly the airline industry is passing through one of the most difficult and challenging recessions. Hence; looking forward, Ethiopian will continue to sustain its growth strategy with proper caution and monitoring of the operating environment.
In August 2008 Ethiopian won the 2008 Corporate Achievement Award of Aviation & Allied Business for setting the pace and continued contribution towards the growth of African aviation industry. In addition, Ethiopian is the first African carrier to win the 2008 Brussels Airport Company Award in recognition of its distinguished long haul operations which have been manifested through the development of new routes, new products and close cooperation with Brussels Airport in marketing activities.
Ethiopian also scooped the 2008 Best Airline in Africa Award at the African Travel Award in Lagos, Nigeria for its excellent network and convenient connections in Africa.
Ethiopian Airlines, www.ethiopianairlines.com, one of the largest and fastest growing airlines in Africa made its maiden flight to Cairo in 1946. With the addition of new flight services to Ouagadougou, Lubumbashi, and Abuja, Ethiopian provides dependable services to 33 cities in Africa and a total of 53 international destinations spread across the globe.
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Great job ethiopian airline and wish more the best.Ethiopians please don’t take another air.
I heard few of ethiopians comlaining about the service,but to my dismay i never encounter one.
I don’t know but all the women hostes are nice to me i hope is not because i good looking.
Even though the hostes yelled at me or punch me on the gut.I will not change to another airline.
Expose those lousy employee if you encounter one and make sure it gets corrected.
Ethiopia air line is yours…
Obviously, this is very well managed airline and it continues to do well while others downgrade or get bought out by the bigger fish because they are unable to survive on their own during the world economic crisis. I am proud and please the success Ethiopian Airlines have and I pray it continues to do well in the future. I also who many if not all Ethiopians do all they can to book their travel to Ethiopia via Ethiopian. We can certainly put our political differences aside and be proud and thankful when something like this good news is happening for our country.
awroplan meta meta eyegesegesse
BEZEFEN andegna Tiliye Gessesse
GOD BLESS ETHIOPIA !
I LOVE MY COUNTRY !
Its good if this money is not pouring into private pockets. Invested wisely in its economy and lives of its people who faces hunger day by day.
One of the few success stories of Africa in general and Ethiopia in Particular!
There are still rooms for more growth in Africa and ETHIOPIAN is strategically positioned itself to be at the forefront of that growth.
But its customer satisfaction ratings are still some of the lowest in the Industry
COMMON EAL PUT YOUR BACK INTO IT
You will not be in the position to abusue your customemrs for ever just because you think they have no choice
People are getting fed up with your poor service and there will soon be alternatives and then we will see how you fare
This is great news!
One area the news did not cover is the exchange rate!
ETH Birr has fallen by 30% or so against the US dollar in the past year. So, it will cost a lot more for ET to operate.
For example, Ethiopian airlines is expecting its 787 dreamliner to arrive in Addis Ababa in 2010. Usually 30 to 50% down payment is paid at the time of the order (hence at a better exchange rate). But up on delivery, the balance must be paid in full, which will be at the new exchange rate, will prove to be too expensive.
This is something beyond the control of ET. No exchange hedging here, as Birr is not a hard currency.
Regardless, my hats off to the super intelligent management at the Ethiopian Airlines.
We are proud of your accomplishments! Keep it up!
Congratulations to Mr. Girma Wakke, Leul G/Medhin and the rest of the team.
The quality of service needs an upgrade, Ethiopian also continues to lose it’s employees to airlines like Emirates and Etihad.
Girma Wake, we have read of so many claims of profit, I believe it is high time to start paying employees a decent wage. Employees are being lured to the middle east because of much better pay and better working condition.
For example Ethiopian planes do not have crew rest area with bed and flat screen TV and ear phones equipped with music while the other major international airlines do. Take good care of your employees and customers and you will see much more success.
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