EAL nets 187.2 mln birr half year profit

 By Tedla Yeneakal

 The national carrier Ethiopian Airlines (EAL) announced at a press conference that it has made over 2.145 billion birr in revenues within half a year before auditing, out of which it has managed to net 187.2 million birr profit.

Chief Executive Officer of EAL, Girma Wake, told journalists on Friday, February 4 at the Sheraton Addis that the airline is on a good track, increasing its profit during the same period last year by 10.4%. 

“It is highly significant because, compared with last year when the price of oil in the world market kept escalating, this year we have spent approximately 182.23 million birr additional cost. Had it not been for the mounting fuel price, our revenue could have shot up by 117%,” he said.

Many airlines in the region have been closed due to the inability to cope with the escalating price of fuel.

The CEO also disclosed that EAL has signed an agreement to purchase 10 airplanes from Boeing with the latest technology that can be found in the aircraft manufacturing industry, so as to better serve its growing customers. “We are really proud to be the first airline in Africa and the Middle East to order these aircrafts. It has a big image-building value and we will be the first-launch customers.”

For the acquisition of these planes EAL will pay Boeing 1.3 billion birr with two of them expected to arrive in 2008. “We are under negotiation to borrow money for the purchase of the planes. Since we have good reputation, I don’t think we will face any problems,” said the CEO.

When asked whether the loan will be requested from the Barclays Bank or City Bank, Girma declined to give the identity of the bank or banks. He said he would rather not comment, as it could affect the negotiation process.

In related news, Airbus officials will be in Addis Ababa this week to discuss its offer presented to the executives of the Ethiopian Airlines for the future procurement of its airplane.