The upgrade supports the airline’s role as Africa’s leading carrier, offering more than 200 domestic flights a day and anchoring Ethiopia’s ambition to become the continent’s aviation hub.
Speaking to Channel Africa on Thursday, Mered Fikireyohannes, Chief Executive Officer of Pragma Investment Advisory, said the expansion was driven by rising domestic travel and capacity constraints at Addis Ababa Bole International Airport. “The airport is operating at full capacity, handling around 19 million passengers annually,” he said. “Because of insecurity in some regions, many travellers are choosing to fly rather than use road transport, putting added pressure on domestic routes.”
Ethiopian Airlines’ dominance in the domestic aviation sector, combined with the government’s airport‑building efforts in regional centres, has fuelled significant increases in passenger traffic. “It is sometimes difficult to secure a domestic ticket within a week,” Fikireyohannes noted.
The domestic expansion forms part of a broader growth strategy that includes the proposed Bishoftu International Airport, a mega‑project expected to accommodate up to 110 million passengers upon completion.
“This will position Ethiopian Airlines far ahead of regional competitors like Kenya Airways and South African Airways,” Fikireyohannes said. The first phase, due by 2028 or early 2029, is designed to handle 60 million passengers a year.
Ethiopian Airlines already holds minority stakes in multiple African airlines, including in Nigeria, the Democratic Republic of Congo and countries in East, West and Central Africa, enhancing its regional reach.
The Ethiopian government is in discussions with the Export–Import Bank of China to finance the new airport, which is expected to cost $9 billion. Fikireyohannes said lenders view Ethiopian Airlines as a highly credible borrower. “The airline has its own balance sheet, its own credit rating and contributes nearly 10% to Ethiopia’s gross domestic product,” he said. “Creditors are not worried about default.”
Ethiopian Airlines plans to create a special‑purpose vehicle to raise funds at commercial rates rather than seeking concessional loans. Chinese contractors, with a strong record of airport construction, are seen as frontrunners if they can also supply financing through export credit arrangements.
–ChannelAfrica–
