Africa’s largest and most valuable airline, Ethiopian Airlines, says it lost roughly $137 million in a single week as escalating conflict involving the United States, Israel, and Iran disrupts air travel across the Middle East, Business Insider Africa reported.
The war, has forced the airline to suspend flights to 10 destinations across the Gulf and wider Middle East, sharply reducing passenger and cargo operations at its Addis Ababa hub.
Business manager Lemma Yadhecha said the airline has been canceling up to 15 passenger flights daily, totaling more than 100 flights per week.
“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.
Cargo services, a critical revenue stream and logistics link between Africa and the Middle East, have also been suspended, bringing total weekly passenger and cargo flight cancellations to over 160.
Before the conflict, Ethiopian Airlines carried an estimated 40,000 to 50,000 passengers weekly to the affected region.
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To reduce losses, the airline is redeploying aircraft from Middle Eastern routes to other international destinations, helping maintain aircraft utilization.
Analysts warn the broader airline industry could face rising costs if the conflict persists, with higher global oil prices adding financial pressure.
The latest escalation began when the United States and Israel launched airstrikes on Iran, prompting Tehran to respond with missile and drone attacks across the Gulf.
The first 100 hours of the campaign, called Operation Epic Fury, cost an estimated $3.7 billion, or roughly $891 million per day, according to the Center for Strategic and International Studies.
The humanitarian toll is also mounting, with over 1,300 civilian deaths reported in Iran, including more than 165 children, alongside military casualties from the United States and Israel, and deaths reported in the United Arab Emirates.
For Ethiopian Airlines, the crisis underscores how quickly geopolitical conflicts can disrupt global travel and trade.
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Image Credit: Business Insider Africa
