Ethiopian Airlines Secures $450 Million Financing from Citi to Add 5 New Boeing Aircraft
Addis Ababa – Africa’s largest carrier Ethiopian Airlines is taking to the skies with new Boeing planes thanks to a hefty $450 million financing agreement aimed at expanding the airline’s fleet for growth and modernization. The deal facilitated by Citi will fund Ethiopian’s acquisition of three new Boeing 737-8 passenger aircraft and two Boeing 777F cargo planes. It represents Citi’s biggest aircraft financing arrangement in Ethiopia over the past decade.
The financing includes a loan guarantee from the Export-Import Bank of the United States (EXIM) to underwrite the substantial capital investment. The funds will be secured against the value of the newly acquired planes themselves. According to Ethiopian Airlines Group CEO Mesfin Tasew, “This financing will allow us to expand our fleet size by adding five new aircraft. Fleet expansion being one of our strategic growth pillars, we will continue expanding and modernizing our fleet size so as to grow our business and reach new markets.”
The airline plans to deploy the new fuel-efficient Boeing jets to further connect Africa to worldwide destinations in the Americas, Europe, Middle East and Asia.
As Africa’s fastest-growing and most profitable carrier, Ethiopian Airlines continues investing in fleet upgrades and expansion to cement its dominant position. The airline currently operates a diverse fleet of over 130 planes with an average age of just 5 years, making it one of the youngest and greenest globally. The new influx of Boeings will replace older jets being phased out through the airline’s fleet renewal strategy. This supports efficiency, capacity growth and sustainability goals by reducing carbon emissions per flight.
Analysts forecast continued brisk air traffic growth in Africa at around 5% annually over the next two decades. With passenger volumes rising and cargo demand surging, Ethiopian is positioning itself at the forefront to meet Africa’s expanding aviation needs.
