Ethiopian Airlines has implemented a new policy requiring all foreign international passengers to purchase airline tickets in US dollars, effective July 8, 2024. Previously, foreign travelers could buy tickets using Ethiopian Birr while in Addis Ababa.

The decision comes amid ongoing difficulties for airlines in repatriating funds from ticket sales within Ethiopia. As of June 2024, Ethiopia had USD 115 million in airline funds blocked from repatriation, representing over 13% of the total USD 880 million held up across Africa.

Kamil Alawadhi, IATA’s Regional Vice President for Africa and the Middle East, highlighted the severe impact of blocked funds on airlines' operations in Ethiopia. The inability to repatriate funds hinders investment, limits route expansion, and reduces the overall economic benefits aviation can provide to the country.

While the aviation industry in Africa is projected to return to profitability in 2024, with an estimated USD 100 million in net profit, the figure equates to a mere 90 cents per passenger, significantly lower than the global average of USD 6.14. Kamil Alawadhi emphasized that resolving the blocked funds issue is crucial for unlocking aviation's full potential in driving economic growth across the continent.

Source: Capital Ethiopia