Africa’s Most Valuable Airline Loses $137 Million Over Middle East War
Africa’s largest and most valuable airline, Ethiopian Airlines, says it has lost roughly $137 million in a single week as the escalating conflict involving the United States, Israel, and Iran disrupts air travel across the Middle East.
The war, which entered its eighth day on Saturday, has forced the airline to suspend flights to 10 destinations across the Gulf and the wider Middle East, triggering a sharp decline in passenger and cargo operations at Africa’s most important aviation hub in Addis Ababa.
According to the airline’s business manager, Lemma Yadhecha, the disruption has led to the cancellation of as many as 15 passenger flights daily. In total, more than 100 flights per week have been halted as security risks escalate across regional airspace.
“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.
The airline said the operational shock extends beyond passenger travel. Cargo services, a critical revenue stream for the carrier and a key logistics link between Africa and the Middle East, have also been suspended on several routes.
Overall, more than 160 passenger and cargo flights are now being cancelled each week. Before the conflict intensified, Ethiopian Airlines was transporting an estimated 40,000 to 50,000 passengers weekly between Africa and the affected region.
To mitigate losses, the airline has begun redeploying aircraft that previously served Middle Eastern destinations to alternative international routes. The move is designed to maintain aircraft utilisation and soften the financial impact while conflict continues to threaten regional airspace.
Even with these adjustments, aviation analysts warn the broader airline industry could face mounting pressure if the conflict persists. Rising global oil prices, a typical consequence of geopolitical instability in the Gulf, could significantly increase operating costs for airlines worldwide.
The latest escalation began when the United States and Israel launched air strikes against Iran last weekend. Tehran has responded with missile and drone attacks across the Gulf region, raising fears of a wider regional conflict.
According to estimates from the Center for Strategic and International Studies, 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. Reports indicate that more than 1,300 civilians have been killed in Iran, including over 165 children, while several military casualties have been reported among forces from the United States and Israel. Casualties have also been reported in the United Arab Emirates.
For Ethiopian Airlines, widely regarded as Africa’s aviation powerhouse and a vital connector between continents, the conflict illustrates how quickly geopolitical crises can ripple through global travel and trade networks.
