Ethiopian Airlines Group, Africa’s largest carrier, anticipates a significant slowdown in revenue growth this year, with its pace expected to be cut in half. This projection is primarily attributed to the sharp increase in oil prices, a direct consequence of the ongoing Iran war.

The conflict has disrupted global oil markets, leading to higher fuel costs for airlines worldwide. For Ethiopian Airlines, this translates into a substantial impact on its operational expenses and, consequently, its revenue.

The airline, which has experienced robust growth in recent years, now faces a more challenging economic environment. The increased cost of fuel directly affects profitability and necessitates adjustments to business strategies to mitigate the financial strain. The airline is looking for ways to navigate these headwinds.