Africa’s largest and most valuable airline, Ethiopian Airlines, has reported a loss of approximately $137 million over the course of a week, as escalating military conflicts in the Middle East have disrupted air travel. The conflict involves the United States, Israel, and Iran, and has led to widespread suspensions and operational challenges for airlines operating in the region.
The airline has suspended flights to 10 destinations across the Gulf and the wider Middle East, halting over 100 flights weekly. These disruptions have significantly impacted passenger and cargo operations, affecting up to 50,000 travelers each week. According to Ethiopia’s business manager Lemma Yadhecha, some routes that previously operated three flights daily are now fully suspended, contributing to the estimated loss.
In response to the crisis, Ethiopian Airlines has begun redeploying aircraft from Middle Eastern routes to alternative international destinations to mitigate financial setbacks. Nevertheless, analysts warn that the ongoing conflict poses a risk to the global aviation industry, primarily through rising oil prices driven by regional instability, which could escalate operational costs worldwide.
The escalation started last weekend with US and Israeli air strikes on Iran, prompting Tehran to retaliate with missile and drone attacks across the Gulf. This has heightened fears of a broader regional confrontation. The Center for Strategic and International Studies estimates that the first 100 hours of military operations, dubbed Operation Epic Fury, cost approximately $3.7 billion.
The humanitarian toll is also severe, with reports of over 1,300 civilians killed in Iran, including children, and military casualties among US, Israeli, and UAE forces. For Ethiopian Airlines, a vital connector between Africa and global markets, the conflict underscores the rapid ways geopolitical crises can ripple through trade and travel networks, affecting millions of lives and economic stability.
