Ethiopian Airlines sees ‘small’ impact from 50% currency plunge

Ethiopian Airlines Group said it took only a minor hit from a more than 50% plunge in the country’s currency this year, shielded by income from its international routes. Africa’s largest carrier saw a “small impact” after authorities floated the birr in July, CEO Mesfin Tasew said Monday in an interview. Losses occurred when “local money in the banks was devalued” and the airline kept domestic ticket prices unchanged as a “social service,” he said, without giving figures. The effects are limited by the fact most of Ethiopian Airlines’ passengers take international flights priced in dollars, Mesfin said on the sidelines of an aviation event in Cairo, Egypt. Going forward, Ethiopia’s move will likely be a boon for trade and the economy, he added. The birr has lost 53.6% of its value against the US dollar since the start of 2024, according to data compiled by Bloomberg. Ethiopia is also moving ahead with its plans to build a new $5b airport near the capital, Addis Ababa, that’s set to be the continent’s largest. Authorities have secured the location and are working on planning new homes at another site for farmers who were on the land, Mesfin said.<br/>