Ethiopian Airlines weighs domestic flight cuts amid soaring jet fuel costs

Ethiopian Airlines may suspend short-haul and domestic routes across its network as part of efforts to cut jet fuel consumption, sources told Ethiopia Observer.

Jet fuel prices have doubled since the outbreak of the Iran conflict, prompting the airline to weigh several cost-saving measures, including reducing or halting some domestic operations.

The move is being considered ahead of schedule as fuel costs surge and supplies tighten globally, informed sources say. In recent weeks, the airline has also sought to secure fuel directly from Nigeria’s Dangote Refinery as it looks for alternative supply sources. However, sources say the move is unlikely to significantly ease the growing fuel crisis.

Ethiopian Airlines’ domestic flight network remains a key part of its operations, but the carrier reported a $28 million loss from domestic services during the 2024/25 fiscal year. The losses were driven largely by exchange rate fluctuations and rising operational costs, according to company officials. They noted that while international tickets are priced in U.S. dollars, domestic fares are sold in Ethiopian birr, leaving the airline more exposed to currency depreciation and inflationary pressures.

The airline has also faced mounting fuel and maintenance costs, adding further strain to its domestic operations at a time of global volatility in aviation markets.

Some major airports have already begun running low on jet fuel as the war involving Iran disrupts global supplies, airlines say.

In one of the first cases of fuel shortages directly affecting a major European carrier, a Lufthansa flight to Cape Town was reportedly unable to refuel upon landing last week, highlighting growing pressure on aviation fuel networks worldwide.