News – While many are in trouble, this airline managed to profit during the coronavirus! – Travel Magazine

It may sound strange, but there is one airline that managed to profit in the midst of the coronavirus pandemic.

During the previous decade, they were on the African continent Ethiopian Airlines was considered a leading airline. It is also known as the largest and arguably the most profitable airline on the entire continent, he writes Telegraph.

And while a large number of companies had to land their planes, Ethiopian Airlines managed to maintain its business even without the help of the Government. To make everything even more interesting, as of June 30, the company even reported a profit for the fiscal year.

Airlines do not expect a speedy recovery

Cargo transportation was the key to business during the crown

Freight airline business is what drives and maintains company profitability. Before the pandemic, that segment of business accounted for about 15% of revenue. During March, the company focused on cargo transportation and almost doubled its capacity, removing seats in its 25 passenger planes, thus turning them into cargo planes. Besides, this company has also played a key role in the delivery of medical supplies worldwide. After medical devices and respirators en route to Latin America were detained in U.S. territory, Latin American countries relied on Ethiopians. Ethiopian Airlines has taken over the delivery of essential supplies from China.

Bole International Airport, also the largest in Addis Ababa, but also in the whole country, is by the World Health Organization and other important international institutions designated as a humanitarian air center. Just across that port is executed transport of millions of masks and medical equipment from China in all 54 African countries. Thanks to the income generated in this way, the state has managed to maintain its budget at a defined level, but also to make payments on loans for services and to pay the aircraft rent. Ethiopians are also expected to win compensation from Boeing, because 157 passengers on an Ethiopian Airlines flight were killed last year due to defective design 737 MAX by Boeing.

Ryanair resumed flights from Nis to Berlin

No layoffs and salary cuts

One of the reasons due to which Ethiopian Airlines to this day survived is a diverse business model. Instead of focusing exclusively on passenger transport, this airline has embarked on other areas of business. Although the fact that air traffic continues to function poorly, which has a negative impact on the business of companies, Ethiopian Airlines was also a major airline for repatriation flights across Africa. The company has assisted the governments of many countries, including the United States and EU countries, by organizing charter flights to return the citizens of those countries to their homes. Although it is sales of airline tickets in the country decreased by as much as a billion dollars, the authorities in this company are optimistic.

“We have the most comprehensive cargo network, the largest fleet, the largest cargo terminal, the most interconnections. I am optimistic that we will definitely return to normal. Our long-term strategy remains unchanged, “Tewolde GebreMariam, CEO, told Travelcodex Ethiopian Airlines.

It is also interesting to note that yes this company has not laid off any workers so far, nor did it reduce the salaries of employees due to the pandemic. According to the assurance of the general director, he does not even intend to do that.

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Source: Travel Magazine by www.travelmagazine.rs.

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