Ethiopia has announced that it has signed an agreement with the African Development Bank (AfDB) for the development of a new mega airport, estimated to cost $7.8bn.
According to a press statement issued by Ethiopia’s Ministry of Finance on March 15, the state-owned Ethiopian Airlines Group had signed a Letter of Intent with AfDB establishing a partnership on the new project.
Ethiopia’s ambitious plan to build Africa’s largest airport is a strong reaffirmation of its long-term sustainability strategy and a testament to its position as the continent’s aviation leader.
Industry analysts believe the new airport will secure Ethiopia’s position as a premier aviation hub.
“The new airport means Ethiopia will remain a key connecting destination for many travelers,” said business expert and aviation analyst at Travel and Tour World, Mersi Ayew.
“The new hub will significantly enhance accessibility from key markets such as Saudi Arabia, the UK, the US, and India. The broad effect means Ethiopia will be positioned as a premier destination in Africa besides expanding the region’s global reach,” told Ayew to bird.
“The decision to move forward with such an infrastructure investment highlights Ethiopian Airlines’ financial stability and vision for sustained growth in an industry that has seen numerous challenges,” he added.
According to an initial statement in August last year, the four-runway airport that will be Africa’s biggest when construction is completed in 2029 will be located near the town of Bishoftu, around 45km (28 miles) from the capital Addis Ababa.
“The new mega airport will increase annual passenger capacity from 17 million to over 60 million by 2040. It will not only drive Ethiopia’s economic development but also enhance Africa’s global air connectivity and integration,” the statement read in part.
Africa’s aviation industry is experiencing steady increase in travel demand
By 2050, 45% of all passengers in Africa are projected to come from the international segment, and 46% by 2052, according to the ACI World Airport Traffic Forecasts.
ACI projects Africa’s air passenger traffic to hit 261 million by 2025 and double again by 2040. Meeting this demand requires over $32 billion, with nearly 40% earmarked for new greenfield airports.
The state-owned Ethiopian Airlines is at the forefront of meeting these demands. The current main hub, Addis Ababa Bole International Airport, has already exceeded its operational capacity due to the airline’s growth over the years.
The latest airport traffic figures by OAG Aviation highlighting travel traffic last year show less than 200,000 passengers separating South Africa’s OR Tambo (12.27 million passengers) and Addis Ababa (12.1 million) in 2024.
Additionally, OAG anticipates Bole International Airport could overtake OR Tambo this year, driven by the ever-growing ambitions of its flagship carrier Ethiopian Airlines.
Ethiopia’s infrastructure ambitions are complemented by Ethiopian Airlines’ expansion strategy, which spans fleet modernization, new routes, and strategic partnerships.
The airline recently bolstered its premium service offerings by introducing a Boeing 737-800 business jet to its VIP charter services, targeting high-end travelers and diplomatic missions. This move aligns with its broader goal of “diversifying revenue streams while maintaining premium service delivery.”
Fleet expansion has also been significant, with Ethiopian Airlines being the first African carrier to introduce the Airbus A350-900 XWB and later the A350-1000 (the latest generation of Airbus’ wide body version), reinforcing its commitment to operating a modern and fuel-efficient fleet.
Furthermore, the airline continues to expand its network, with recent additions including routes to Abu Dhabi (beginning July 2025) and other additions to Athens, Karachi, and Copenhagen, as well as increased frequencies on popular routes such as daily flights to Ouagadougou and Conakry.
According to AVIONEWS, Ethiopian Airlines is also preparing to enhance its European network by introducing a new connection to Porto, Portugal, through an extended routing of its existing Addis Ababa–Madrid service.
The airline reportedly announced the development last week, confirming that the service is set to begin on July 2, 2025.
Strategic collaborations further cement Ethiopian Airlines’ growth trajectory. The recent partnership with the Democratic Republic of the Congo to launch Air Congo is a prime example of how the airline is leveraging alliances to strengthen its footprint in Africa.
Ethiopian Airlines now co-owns a 49% stake in Air Congo, ensuring that its brand presence remains strong in one of the continent’s largest markets.
The initiative is expected to boost intra-African air travel, a segment that has long suffered from limited connectivity and high operational costs.
Ethiopian Airlines’ Vision 2035 plan is to rise to be among the top 20 aviation groups globally. Specific targets include reaching an annual revenue of $25 billion, handling 1.3 million tons of cargo, and serving 67 million passengers across 207 international destinations.
bird story agency
