IATA Urges Ethiopia to Double Down on Aviation Investment as Passenger Demand Set to Triple

Early planning for Operational Readiness and Airport Transfer (ORAT) will be essential to ensure a smooth transition and avoid operational disruptions as capacity expands.

The International Air Transport Association (IATA) has called on Ethiopia to sustain its strong aviation growth trajectory by prioritizing infrastructure expansion, workforce development, and sustainability, warning that demand for air travel in the country is set to triple over the next two decades.

The appeal comes as Ethiopia continues to position itself as a leading aviation hub in Africa, with Addis Ababa hosting the ongoing Focus Africa Conference, where industry leaders and policymakers are shaping the future of the continent's air transport sector.

Aviation Already a Major Economic Driver

Aviation is already a critical pillar of Ethiopia's economy, delivering substantial economic and social benefits. According to IATA's latest data:

• The sector contributes $2 billion to economic activity, equivalent to 1.2% of GDP

• It supports approximately 527,000 jobs across aviation, supply chains, and tourism

• Handles 248,400 tonnes of air cargo, strengthening trade and connectivity

These figures highlight aviation's role not just as a transport sector, but as a key enabler of economic development, employment, and global integration.

"Aviation plays a central role in Ethiopia's economic growth… but there is clear potential to grow this contribution further," said Kamil Alawadhi, IATA's Regional Vice-President for Africa and the Middle East.

Demographic Advantage Meets Rising Demand

Ethiopia's growth outlook is underpinned by strong demographic fundamentals. With around 60% of the population under the age of 25, the country is poised to see a surge in mobility demand, skills development, and workforce expansion.

IATA says this creates a unique opportunity to translate aviation growth into:

• Job creation

• Skills development

• Expanded trade and tourism

• Broader economic transformation

However, unlocking this potential will require strategic planning and sustained investment.

Three Priorities to Sustain Growth

To ensure Ethiopia can meet rising demand and maximise aviation's economic impact, IATA outlined three key priorities:

1. Cost-Efficient Infrastructure Development

As Ethiopia advances plans for the new Bishoftu international airport, IATA emphasised the need for:

• Cost-efficient design and financing

• Close coordination with airlines and industry stakeholders

• Compliance with ICAO global standards

Early planning for Operational Readiness and Airport Transfer (ORAT) will be essential to ensure a smooth transition and avoid operational disruptions as capacity expands.

2. Training and Workforce Development

Meeting future demand will require a significant expansion of skilled aviation professionals, including:

• Pilots and engineers

• Cabin crew and ground staff

• Air traffic and operations specialists

Institutions such as Ethiopian Aviation University—an IATA-authorised training centre—are seen as critical to building this talent pipeline.

A well-trained workforce, IATA notes, will be essential to maintaining safety, efficiency, and service quality as the sector scales up.

3. Sustainability and Climate Finance

Sustainability is emerging as a central pillar of aviation growth. Ethiopia has a significant opportunity to leverage global carbon markets through the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).

The country is estimated to have 16.1 million CORSIA-eligible emissions units (EEUs) available in the near term—representing a potential source of climate finance.

IATA is encouraging the government to:

• Issue Letters of Authorization for carbon credit use

• Participate actively in global carbon markets

• Align aviation expansion with the industry's net-zero emissions target by 2050

A Strategic Opportunity for Africa's Aviation Hub

Ethiopia's aviation success—driven in part by Ethiopian Airlines' global network—has positioned the country as a key gateway between Africa and international markets.

With demand expected to surge, the next phase of growth will depend on balancing expansion with:

• Cost efficiency

• Workforce readiness

• Environmental sustainability

Looking Ahead

As global aviation rebounds and Africa's economies expand, Ethiopia is well placed to capitalise on rising demand. However, experts warn that timely investment and policy alignment will be critical to sustaining momentum.

IATA's message is clear: aviation can become an even more powerful engine of growth for Ethiopia—but only if supported by forward-looking infrastructure, skilled people, and sustainable practices.

With millions of new passengers expected in the coming decades, the country now faces a pivotal moment to transform its aviation success into long-term economic and social gains.