Ethiopian Airlines maintains profitability amid oil hike

The Ethiopian airlines (EAL), the country's national carrier, said Monday it has secured 104 million birr (12 million U.S. dollars) in profits during the first nine months of the current fiscal year.

The money was secured in the nine months since July 2005 despite the ever-increasing price of petroleum, said EAL CEO Girma Wake while presenting a nine-month performance report of the airliner to the lower House of People's Representatives.

However, the oil price hike has been exerting immense constraints on the financial situation of the airliner, Girma said, adding that the competition in the aviation industry has become more fierce at present since airliners like Emirates Airlines and Turkish Airlines had begin flying to Addis Ababa.

EAL has been forced to incur additional 192.5 million birr (22. 18 million dollars) in petroleum expenditure during the period due to the global fuel price hike, he said.

Girma said the airliner has been improving its competitiveness in the aviation industry from time to time through implementing effective and efficient working procedures.

EAL is a major international air carrier and the largest African Airline. It offers convenient service from the United States, Europe and Asia.

It provides domestic and international air service between Ethiopia and other countries. It has a good safety record and is one of the few profitable African airlines. It also provides training and maintenance to more than a dozen African and middle eastern airlines.

Source: Xinhua