Ethiopian Airlines has reiterated its call for a political resolution to a protracted financial dispute with Eritrea after its bank account in the neighbouring country was frozen, effectively halting its operations there.
Speaking at a press conference in Addis Ababa on Thursday, August 7, 2025, CEO Mesfin Tasew confirmed that efforts to legally unblock the funds held in Eritrea had failed, leaving the airline with no choice but to appeal for diplomatic intervention.
“We tried to contact the relevant authorities, but our efforts were in vain,” Tasew said, underlining the impasse that has persisted since August 2024, when Ethiopian Airlines first learned that its bank account had been frozen by Eritrean authorities.
The dispute originated in March 2024, when the Eritrean Civil Aviation Authority lodged a claim demanding compensation from Ethiopian Airlines over lost baggage.
The ensuing disagreement led to the freezing of the airline’s assets in the country and the subsequent suspension of all flights to the capital, Asmara.
Despite the diplomatic strain, Tasew affirmed that Ethiopian Airlines continues to use Eritrean airspace for international routes and is committed to maintaining dialogue.
“We believe a political solution is the only viable way forward to address this issue,” he said.
The airline, Africa’s largest and one of its most successful, has been expanding its network across the continent and beyond. However, the unresolved financial blockade in Eritrea has added a layer of geopolitical tension to its operations in the Horn of Africa — a region already fraught with historical and political complexities.
While neither the Eritrean government nor the Civil Aviation Authority has issued a public statement, the situation remains a key test of regional cooperation and the resilience of cross-border commercial ties.
For now, Ethiopian Airlines remains grounded in Asmara, as hopes for a diplomatic breakthrough continue.
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