This archive report was first published on 1 July 2020.
As the COVID-19 pandemic continues to disrupt global air travel, Ethiopian Airlines has found a way to stay afloat. According to CEO Tewolde Gebre-Mariam, the airline's cargo services have been a major contributor to its revenue, helping to service loans, pay aircraft leases, salaries, and rent.
With monthly payments totaling between $120 million and $150 million, the airline has been able to maintain its financial stability. In an interview with Bloomberg on June 30, 2020, Gebre-Mariam revealed that the cargo revenue has been instrumental in keeping the airline profitable.
“We may not be as profitable as we expected, but we registered some profit,” Gebre-Mariam said. “The first half of the year was good, and the cargo business has also done very well.”
At the onset of the pandemic, the airline doubled its cargo capacity by converting 20 passenger planes for cargo, adding to its existing fleet of 10 Boeing 777s and 2 Boeing 737s. This strategic move has enabled the airline to establish itself as a formidable cargo transporter between Africa and Asia.
With the pandemic still raging, the airline has announced plans to resume commercial flights, while reinforcing protective measures to ensure the safety of both clients and staff. These measures include requiring clients to wear face masks on board, undergo health screening before boarding, and sanitize their carry-on luggage.
Resuming Flights with Caution ¶
As the airline looks to the future, it is also exploring new partnerships, including a potential deal with Alibaba to become the company's official partner in Africa.
