Ethiopian Airlines Group has formally resubmitted a request for a capital increase to Ethiopian Investment Holdings (EIH), reviving a proposal initially lodged three years ago, sources familiar with the matter told local media.
The airline’s board has approved the renewed request and forwarded it to EIH, where it is currently under review. Officials have not disclosed the exact size of the requested capital increase.
The request echoes a similar proposal submitted in October 2022, when the airline sought to raise its paid-up capital from approximately 100 billion Birr (US$1.86 billion) to 300 billion Birr (US$5.57 billion). At that time, CEO Mesfin Tasew confirmed the submission, noting that the airline awaited a response.
Ethiopian Airlines has argued that the increase is necessary to keep pace with the rapid growth of its assets and business operations, which have outstripped the level of its current paid-up capital. The airline reported record revenues of US$7.6 billion in the 2024/2025 fiscal year, ending July 7, 2025 – an eight percent increase from the previous year. Its paid-up capital currently stands at around 263 billion Birr (US$4.89 billion).
The renewed capital request has also been discussed in parliamentary oversight sessions. Last month, the parliamentary Committee on Government Development Enterprises reviewed EIH’s first-quarter performance, examining Ethiopian Airlines’ capital needs. A lawmaker described the airline as one of Ethiopia’s most strategic national brands, contributing significantly to foreign exchange earnings and EIH revenues, and questioned whether the state was providing adequate support to ensure its continued growth.
Deputy Head of EIH, Melikte Sahlu, told MPs that capital constraints remain a key challenge across state-owned enterprises. She stressed that EIH must balance limited national resources with the need to sustain operations and generate dividends. While the agency would ideally support capital increases for all its enterprises, priorities are set based on operational risk and strategic importance.
EIH’s board is expected to decide whether and how to accommodate Ethiopian Airlines’ renewed capital request, weighing the airline’s growth ambitions against national resource limitations.
