Ethiopian Airlines plans major fleet upgrade with order for 20 regional jets

Business Insider

2 days ago

Ethiopian Airlines, Africa's largest and most profitable carrier, is set to purchase at least 20 regional or small narrowbody planes as part of its strategy to grow its domestic fleet and retire aged aircraft.
Ethiopian Airlines plans to expand its domestic fleet with at least 20 regional or small narrowbody planes.
The airline is currently evaluating aircraft models including Airbus A220, Embraer E-2, and Boeing 737 MAX 7.
Challenges such as aircraft delivery delays and engine shortages are affecting operations despite increased demand.
The Addis Abeba-based airline is presently testing multiple models, including the Airbus A220, Embraer E-2, and Boeing's yet-to-be-approved 737 MAX 7.
While the Boeing 737 MAX 7, one of the contenders for the new regional order, has a larger seating capacity, its certification has yet to be finalized.
The actual number of aircraft bought will depend on the type chosen, according to a report seen on Reuters.
This strategic move comes as Ethiopian Airlines is witnessing an increase in travel demand while struggling to achieve capacity owing to aircraft delivery delays and ongoing global supply chain problems.
Several planes have also been grounded owing to engine shortages, placing pressure on operations even as passenger and cargo numbers increase steadily.
"We are receiving airplanes from both Boeing and Airbus, but deliveries have been delayed, some by three months, some six months, some more," CEO Mesfin Tasew Bekele said on the sidelines of an annual IATA meeting of global airline leaders.
Boeing delays and forced leasing
The Ethiopian Airlines fleet is primarily dominated by Boeing models, however, delays from the United States aircraft manufacturer have created substantial operating issues.
In April 2024, Ethiopian Airlines noted that it is waiting for 737 MAX jets and 777 freighters.
Due to the continued delays, the airline decided to lease aircraft in August 2024 to sustain its growth trajectory.
The supply delays came despite a substantial order announced by Ethiopian Airlines in 2023 to buy 11 Boeing 787 Dreamliners and 20 Boeing 737 MAX planes as part of a long-term fleet upgrade strategy.
Infrastructure investments for Ethiopian Airlines
The desire for additional planes is consistent with Ethiopian Airlines' overall strategy of expanding its infrastructure and services.
In March 2025, the airline struck a historic deal with the African Development Bank to work on a new airport project to meet rising demand in both the passenger and cargo markets.
With an anticipated $7.8 billion investment, the airport expects to accommodate 60 million people per year by 2040, more than tripling its existing capacity of 17 million.
This investment demonstrates the airline's goal to establish itself as a global aviation center that connects Africa to the rest of the globe.
Futhermore, in April 2025, Ethiopian Airlines announced a partnership with Archer Aviation of the United States to create an electric air taxi service in the East African country.
The service is intended to use Archer's Midnight aircraft, which is a four-passenger electric vertical takeoff and landing (eVTOL) vehicle designed for short-haul urban transport.
The program aims to alleviate traffic congestion in East African cities while also lowering carbon emissions, making Ethiopian Airlines one of the first African airlines to aggressively pursue green aviation technologies.