Ethiopian Airlines denies layoffs amid $550m loss

April 8, 2020 in Business, Companies, Transport by Editor

GebreMariam did not provide specific details on Tuesday, but said their cargo division is doing well

Ethiopian Airlines, Africa’s biggest and most profitable carrier, has denied laying off all of its workers amidst the coronavirus pandemic, but admits to making $550 million in losses since the global health crisis began to escalate during March.

Group CEO, Tewolde GebreMariam said on Tuesday, “Due to coronavirus the airline is working at only 10 percent of its flight capacity and so far we have lost $550 million.” The loses cover the period between January and April.

In a follow-up statement, management said, ‘Ethiopian Airlines strongly refutes the fake news which appeared in some social and traditional media and which wrongly states as if Ethiopian Airlines is laying off employees.

‘Ethiopian Airlines has not laid off any regular employee and has no plans. Needless to mention that the airline industry is passing through unprecedented crisis caused by the COVID-19 and Ethiopian Airlines is not an exception. Ethiopian Airlines is losing significant part of its regular revenue. However; there is no plan to reduce regular employees’.

Restrictions on internatoinal travel has meant the airline withdrawing 90 pc of its aircraft from service, but GebreMariam said their cargo division is doing well.