Abu Dhabi's Etihad Airways has signed a joint venture with Ethiopian Airlines as the two carriers aim to develop routes between the UAE and Ethiopia, tapping into the countries' growing aviation markets.
The partnership, signed in Addis Ababa, includes a codeshare arrangement and the launch of new flights between the two capitals, giving passengers links to destinations in the Middle East, Africa and Asia, Etihad said on Wednesday. It added that the partnership is subject to regulatory approval.
Etihad will start daily flights from Zayed International Airport to Addis Ababa Bole International Airport from October 1, while Ethiopian Airlines will begin reciprocal services on July 15 – its third destination in the UAE after Dubai and Sharjah. Ethiopian currently has more than 120 weekly passenger and cargo services to the Gulf and Middle East.
Etihad is slated to start two more African routes in 2025, to Tunis and Algiers, both in November. That is part of Etihad's 10 new destinations this year, which also comprise Atlanta, Taipei, Medan (Indonesia), Phnom Penh, Krabi (Thailand), Chiang Mai, Hanoi and Hong Kong. Budget carrier Wizz Air Abu Dhabi will begin flights to Varna, Bulgaria, on March 31.
Mohammed Ali Al Shorafa, chairman of Etihad Aviation Group, said on Wednesday that the joint venture marks a “monumental moment” in Etihad’s history and is “only the tip of the iceberg”.
“Ethiopian Airlines is considered the gold standard and we believe that this relationship is going to expand the horizons for both Etihad Airways and Ethiopian Airlines,” he said at a press conference in Addis Ababa for the signing of the deal.
Mesfin Tasew, group chief executive of Ethiopian Airlines, said the deal will allow both airlines to expand their networks and contribute to the growth of the aviation industry in the Middle East and Africa region.
In a separate statement, Mr Al Shorafa said the start of flights between Abu Dhabi and Addis Ababa will give passengers “seamless access to a growing list of destinations via our extensive hubs. It also paves the way for deeper discussions on working together across our respective regions on other co-operation, including frequent-flyer programmes, training and cargo”.
Regional airlines, particularly in the Gulf, had a strong year of profitability in 2024 amid continued demand for air travel, a push to increase international tourist arrivals, investment in airport upgrades and government policies designed to boost the aviation sector's contribution to gross domestic product.
Airlines in the Middle East are forecast to earn $5.9 billion in net profit in 2025, up from $5.3 billion last year, according to the International Air Transport Association. Profit per passenger will soar to $23.90 next year, more than triple the global average of $7 forecast in 2025, the aviation trade body recently said.
Middle East airlines reported a 9.4 per cent traffic jump in 2024, as global air passenger demand reached a record high, with full-year traffic increasing by 10.4 per cent annually, according to Iata.
Etihad continues to boost its portfolio and operations. The airline added 12 aircraft to its fleet last year, taking its total size to 97 aircraft as of December, including six new Airbus A320 NEOs, and the return to service of its fifth A380, it said last month.
Its strategy allowed it to post a record after-tax profit of Dh1.75 billion ($476 million) in 2024, more than three times that of 2023, driven by strong passenger and cargo revenue, on the back of its route network expansions. The airline, which plans to triple passenger numbers to 33 million by the end of the decade, expanded its operations to more than 1,700 weekly flights last year.
Ethiopian, meanwhile, announced the launch of a number of routes in 2025 in an expansion push. The airline said last month it will start services to Hyderabad in India on June 16, and to Porto in Portugal and Hanoi, Vietnam, on July 2 and 10, respectively.
Africa's largest carrier also boosted its fleet this week with the addition of a Boeing 737-800 aircraft, dedicated exclusively to VIP and smaller group charter flights.
The Etihad-Ethiopian partnership also “underscores our dedication to fostering strong bilateral relations and promoting economic growth between Ethiopia and the UAE”, said Mr Tasew.