Airline Weekly Lounge Inside the Ethiopian Airlines Playbook
Jan 8, 2026
Ethiopian Airlines emerges as a standout success in African aviation. The hosts delve into its impressive growth, strategic hub in Addis Ababa, and unmatched intra-Africa connectivity. Key factors like government support and a thriving cargo business fuel its profitability. They also discuss the impact of China on its expansion and the competitive threats from Gulf and Turkish airlines. As the conversation shifts to U.S. airlines, they highlight upcoming earnings, challenges for Spirit Airlines, and Alaska's ambitious long-haul strategy.
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Hub Geography Drives Global Reach
- Ethiopian Airlines built a global hub despite Ethiopia's low per-capita income by leveraging geography and scale.
- Its Addis Ababa location gives strong connecting reach between Africa, Europe, the Middle East and Asia.
Diaspora Demand Powers Routes
- Jay describes the Ethiopian diaspora as a major demand driver with big communities in Washington, California and the Middle East.
- He uses Ethiopian restaurants in Washington as a personal example of that diaspora presence.
Diversified Strengths Fuel Profitability
- Ethiopian pairs a large cargo business, low costs, and government backing to stay profitable.
- These structural strengths helped it join the handful of airlines earning over $1B operating profit in 2024.