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Ethiopian Airlines faces growth challenges due to Boeing strike delays

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Ethiopian Airlines faces growth challenges due to Boeing strike delays
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Ethiopian Airlines' CEO, Mesfin Tasew, has expressed concerns over the airline's growth plans due to a recent seven-week strike by Boeing machinists. The strike halted production of the 737 MAX and 777 aircraft, both of which are part of Ethiopian's orders with Boeing.

Tasew stated that the delays caused by the strike would impact the airline's long-term growth objectives. He noted, "Delivery dates of the airplanes that we have ordered from Boeing are still sleeping." Despite Boeing ending the costly strike, resuming full production will take several weeks, leading to further delivery delays for Ethiopian.

The airline has also placed orders for other Boeing models such as the 787 Dreamliner and the upcoming 777X. To mitigate immediate capacity needs due to these delays, Ethiopian Airlines has resorted to leasing MAX aircraft, with four expected to arrive soon.

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Despite past challenges, including a tragic crash in March 2019 involving a 737 MAX, Ethiopian Airlines continues to show confidence in Boeing. This was evident when they expanded their order book at the Dubai Air Show in November 2023, adding more 737 MAX 8s and 787-9s.

Ethiopian Airlines remains on track to meet its end-of-year targets despite these setbacks and regional operational difficulties. The airline reported over $7 billion in revenue for FY2024 and has significantly expanded its network.

In contrast, Airbus has been punctual with its deliveries to Ethiopian Airlines. The carrier recently received its first A350-1000 aircraft from Airbus in early November and expects more deliveries by March 2025.

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