Ethiopian Airlines CEO: Knowing our African customers has been key

Ethiopian Airlines has come a long way since April 1946, when its first scheduled services flew second-hand Douglas C-47 Skytrains to the likes of Aden, Djibouti and Jimma. Fast-forward 70 years and the carrier has grown into the leading airline in Africa, its fleet of 85 aircraft – average age: five years – serving 90 destinations on five continents from its hub in Addis Abba. “Although 2016 has been [a] very challenging year for the industry, all in all it was a very good year for Ethiopian Airlines,” says Tewolde GebreMariam, group CEO and a 30-year veteran of the company. And GebreMariam is being modest. In the most recent 2015-16 financial year Ethiopian reported a 10.3% rise in revenue to $2.43b, an 18% hike in passenger numbers (now 7.6-m) and a 70% spike in net profit to $265m. By comparison, the IATA expects African carriers to lose some $800m this year. On a continent littered with balance sheets deep in the red, what is Ethiopian doing right? “Above all, we superbly understand the African aviation market,” adds GebreMariam. “We know our African customers [better] than any airline.” While Lagos and Nairobi are key routes, South Africa is its dominant long-haul destination in Africa, with 25 flights per week serving Cape Town, Johannesburg and Durban. “South Africa is a mature market, and a diversified one,” explains Abel Alemu, regional manager, Southern Africa. “We see both business and leisure travel to America, Europe and Asia and there is also growing pan-African traffic.” Story has further background.<br/>