Ethiopian Airlines, Africa’s largest carrier, says it will decide within the next three months on a potential order for 25 regional jets as it seeks to expand its domestic and short-haul network, even as it grapples with sharply higher fuel costs.
Chief executive Mesfin Tasew Bekele said late Saturday that the airline is evaluating aircraft from Airbus, Embraer and Boeing as part of its fleet expansion strategy. The options under consideration include the Airbus A220, Embraer’s E2 family, and the Boeing 737 MAX 7, which is expected to receive certification from the US Federal Aviation Administration this year.
The aircraft would be deployed on domestic routes within Ethiopia as well as services to neighbouring countries, reinforcing the carrier’s regional dominance.
“There are some issues, but probably within a matter of three months,” Bekele said when asked about the timing of a decision, without providing further details on the outstanding considerations.
Ethiopian Airlines operates a fleet of 147 aircraft and has built a reputation as one of Africa’s fastest-growing and most profitable carriers, with an extensive network spanning Africa, Europe, the Middle East and Asia.
More Read
However, like many global airlines, it is facing significant cost pressures from rising jet fuel prices, which have surged following geopolitical tensions in the Middle East and disruptions in global energy markets.
Bekele said the airline’s fuel expenditure has increased by about 60 percent system-wide, placing pressure on operating margins despite strong passenger demand in most markets.
The carrier has already adjusted parts of its network in response to changing demand conditions, including reducing flight frequency on some Middle East routes such as Dubai, where services have been cut from three daily flights to two.
More Read
While fuel supply constraints have eased, Bekele said pricing remains a major challenge for the airline.
“We have addressed the supply issue. It is okay now,” he said on the sidelines of the International Air Transport Association (IATA) annual general meeting in Rio de Janeiro. “But the price issue is a serious issue.”
The remarks underscore the broader strain on global aviation, where carriers are balancing fleet expansion plans with elevated operating costs and volatile fuel markets.
Regional aircraft demand has become a key focus for African airlines as they seek to improve connectivity on domestic and intra-African routes, which are often underserved due to limited fleet capacity and high operating costs.
The Airbus A220 and Embraer E2 series are widely seen as strong competitors in the regional jet segment, offering improved fuel efficiency and lower per-seat operating costs compared with older narrow-body aircraft.
Boeing’s 737 MAX 7, meanwhile, remains under regulatory scrutiny but is expected to enter service once certification is completed, potentially adding further competition to the segment.
Ethiopian Airlines has consistently pursued an aggressive expansion strategy, positioning Addis Ababa as a major aviation hub connecting Africa to global destinations.
However, industry analysts say rising fuel prices could slow fleet expansion decisions across the sector if cost pressures persist, even for financially strong carriers such as Ethiopian Airlines.
Despite the challenges, the airline maintains that demand for air travel across Africa remains strong, particularly as economic integration efforts under the African Continental Free Trade Area (AfCFTA) gradually increase cross-border mobility and trade.
For now, the carrier’s upcoming decision on new regional jets will be closely watched as a signal of confidence in Africa’s aviation recovery trajectory amid an uncertain global energy environment.
