Ethiopian Airlines raised operating revenue 17 percent and carried 12.1 million passengers in the 2018/19 fiscal year despite the ET302 crash, Group CEO Tewolde Gebremariam told employees, The Reporter said.
An Ethiopian Airlines Boeing 787 taxiing at Addis Ababa Bole International Airport, photographed on September 3, 2018. (Diego7864 / Wikimedia Commons, CC BY-SA 4.0) [file photo]
Tewolde presented the annual report in a recorded video and called it a very challenging year that the airline would never forget. “We lost our beloved staff members and valued customers in the tragic accident of ET302 in March this year. I once again convey my sincere condolence,” he said.
Ethiopian was the first carrier to ground its Boeing 737 MAX 8 jets, on March 10, 2019, hours after the crash, The Reporter said. The airline grounded four MAX aircraft and lost one in the accident, taking five planes out of operation and losing revenue, Tewolde said.
He said fuel prices rose 25 percent during the year, and currency devaluations in some African countries cut the value of ticket sales and made it hard to repatriate funds. He also cited the global economic slowdown, an Ebola outbreak in the Democratic Republic of Congo, and a slowdown at home linked to political instability that weakened exports and cargo demand.
Passenger numbers rose 14 percent, available seats 13 percent and cargo traffic 8 percent, according to the report. The airline operated 110,220 flights, 80 percent of them on time, and launched six new international destinations, bringing the total to 121.
Tewolde said a cost reduction program saved $145 million. “Our operating profit has increased but the net profit has slightly declined,” he said.
The board, chaired by former House speaker Abadula Gemeda, approved a 15 percent salary increase for employees effective July 8, 2019, The Reporter said. The airline declined to disclose its figures, saying the financial report had not yet been audited.
Sources: The Reporter Ethiopia