Ethiopian Airlines is ‘cash-positive’ as shift to cargo pays off

Ethiopian Airlines’ decision to temporarily convert 25 passenger aircraft for cargo operations has helped it to become “cash positive” during the Covid-19 crisis, according to the carrier’s CE Tewolde Gebremariam. Gebremariam notes that combined with Ethiopian’s uniquely strong financial performance in the region over the past decade, its “quick decision” to focus more capacity on cargo operations in the early days of the crisis has paid off. “We have a very strong cash flow,” he states. “We are still managing our cash flow within our internal resources, without any bailout money and without any borrowing for liquidity purposes, and without any lay-offs or salary reductions.” Therefore, while the return of more passenger operations will be the catalyst for a full recovery, the state-owned carrier is “at least in a better position than the rest of our peers” in Africa. Ethiopian’s decision to convert more aircraft for freight operations – by removing some or all of the seats from passenger cabins – came as it recognised two important factors in the early days of the crisis, Gebremariam explains: less bellyhold capacity in the market with passenger aircraft out of action and the increased demand for the transport of “PPE and other medical equipment” related to Covid-19. Favourable fuel prices have also been important.<br/>