Ethiopian Airlines Suspends Flights: $137M Loss Amid Middle East Conflict

Ethiopian Airlines is facing significant financial strain due to the escalating conflict in the Middle East, reportedly losing $137 million per week. The airline has been forced to suspend flights to ten destinations across the Gulf and wider Middle East, disrupting both passenger and cargo operations at its Addis Ababa hub.

The disruption, which entered its eighth day on Saturday, has resulted in the cancellation of approximately 15 passenger flights daily, totaling over 100 flights per week, according to Lemma Yadhecha, Ethiopian Airlines’ business manager. “The airline has cancelled more than 100 flights a week, with some destinations previously operating up to three flights daily, and we have lost about $137 million in a week,” Yadhecha told local media.

Africa’s largest airline suspends regional operations

Beyond passenger travel, the operational shock extends to cargo services, a critical revenue stream for the airline and a vital logistics link between Africa and the Middle East. To mitigate these losses, Ethiopian Airlines is redeploying aircraft previously used on Middle Eastern routes to alternative international destinations, aiming to maintain aircraft utilization while the conflict persists.

Aviation analysts caution that the broader airline industry could face increased pressure if the conflict continues. Rising global oil prices, a common consequence of geopolitical tensions in the Gulf, could further inflate operating costs for airlines worldwide.

The current escalation began when the United States and Israel launched air strikes against Iran last weekend. Tehran responded with missile and drone attacks across the Gulf region, raising fears of a wider regional conflict.

The conflict’s economic impact is already substantial. Estimates from the Center for Strategic and International Studies suggest the first 100 hours of the military campaign, known as Operation Epic Fury, cost approximately $3.7 billion, or around $891 million per day.

The humanitarian toll is also rising, with reports indicating more than 1,300 civilian deaths in Iran, including over 165 children. Military casualties have also been reported among forces from the United States and Israel, as well as in the United Arab Emirates.

For Ethiopian Airlines, a key player in African aviation and a crucial connector between continents, the conflict underscores the vulnerability of global travel and trade networks to geopolitical crises. The airline’s experience serves as a stark reminder of how quickly international events can disrupt even the most established logistical systems.