Ethiopian Airlines, Africa’s largest and most profitable carrier, is grappling with the effects of a recent seven-week strike at Boeing, its CEO, Mesfin Tasew, revealed on Friday. The strike, which disrupted production of Boeing’s popular 737 MAX and 777 jets, could have lasting consequences for the airline’s growth.
“Delivery dates of the planes we’ve ordered from Boeing are still uncertain,” Mesfin said in Addis Ababa, noting that delays in the delivery schedule began over a year ago and had been worsened by the strike.
The industrial action, which ended earlier this month, was sparked by frustration over stagnant wages among Boeing workers. Boeing acknowledged this week that it would take several weeks to restart production lines fully, given the complexities of the process.
While Boeing’s delays pose challenges, rival Airbus has remained on schedule. Ethiopian Airlines recently received deliveries of Airbus A350-900s, helping mitigate some of the impact.
Ethiopian Airlines, which carried 17.1 million passengers and saw a 14% rise in revenue in the 2023/24 financial year, relies heavily on new aircraft to support its growth. The ongoing delays could hinder its long-term expansion plans, Mesfin warned.
The airline has also faced operational setbacks due to conflicts in Sudan, the Middle East, and Israel. Flights to Khartoum, Beirut, and Tel Aviv have been suspended, further impacting its performance.
Ethiopian Airlines’ relationship with Boeing remains complicated. In March 2019, a 737 MAX crash near Addis Ababa killed all 157 people on board, triggering a global grounding of the aircraft. The disaster, attributed partly to Boeing’s Maneuvering Characteristics Augmentation System (MCAS), strained relations between the airline and the manufacturer.
Despite these challenges, Mesfin expressed continued confidence in Boeing, calling it a great aerospace company while acknowledging the crash left a serious scar on the airline. Ethiopian Airlines resumed flights with the 737 MAX in February 2022.
Despite the setbacks, the CEO remains optimistic about meeting the airline’s targets by year-end, buoyed by the Airbus deliveries and other operational adjustments.
