Updated 3rd September 2025– Ethiopian Airlines Group is actively participating in development of airport projects in Ethiopia. The airlines group is set to spend approximately $225 million on the preparing a massive 35 square kilometers plot near Bishoftu. This upcoming Bishoftu Airport is expected to be its new operations hub and international airport. This information was revealed by a report from Ethiopia’s Ministry of Finance.
Another airport project that Ethiopian Airlines has been actively participating in its development is the Yabello Airport. The airlines group recently achieved a major milestone following the inauguration of the airport project. The Yabello Airport will improve regional air connectivity in southern Oromia. Additionally, it will boost the local and regional economy and support Ethiopia’s national development strategy.
Furthermore the Yabello Airport Project is part of Ethiopian Airlines’ broader strategy to expand its domestic network. The airlines aims to grow its domestic network from 22 to 26 destinations. Also, the development of the airport is in line with the airline’s “Vision 2035” plan to become a dominant force in the global aviation industry, with a focus on Africa.
Furthermore, the budget is allocated for land clearing. It will also be utilized for resettlement expenses, and preparing the site for construction of the airport. The airport will be located about an hour drive from the country’s capital.
Bishoftu Airport Project Factsheet
Project name: Bishoftu International Airport (also referred to as Abusera International Airport or Mega Airport City)
Location: Near Bishoftu (approximately 40-45 kilometers southeast of Addis Ababa), Oromia Region, Ethiopia. The specific area is called Abusera.
Proponent: Ethiopian Airlines Group
Key partner/financier: African Development Bank (AfDB)
Estimated cost: $7.8 billion USD
Design completion: Expected by December 2025.
Resettlement and site preparation: Expected to be completed by September 2025.
First phase completion: Anticipated by 2029.
Overall project completion: Within five years from the start of construction.
Capacity:
- Initial Phase (by 2029): 60 million passengers annually.
- Ultimate Capacity: 100-110 million passengers annually.
Aircraft Parking: capacity for 270 aircraft.
Number of runways: Four.
Key features:
- A 1.1 million square meter terminal building with extensive passenger facilities.
- Also, there will be over 126,190 square meters of airline support facilities.
- More than 100,000 square meters of cargo and airport support facilities.
- Branded hotels.
- Cargo logistics centers.
- Aviation maintenance facilities.
- Potential for aircraft body manufacturing.
- Aviation consultancy services.
- Large duty-free shopping area and entertainment centers.
- Business center.
- Logistics hub.
- Training centers.
- Lastly, there will be integration of Ethiopian heritage elements in the architectural design, focusing on sustainability, resilience, and future-readiness.
Also read: Ethiopian Airlines and AfDB Partner on $7.8B Africa’s Largest Bishoftu International Airport
Cost of Households Compensation
Also, according to previous statements from Group executives, up to 17 billion birr will be used for the compensation of the estimated 2,500 households that currently live on the land. Additionally, it has been categorized into eight lots.
In the month of August 2024, Ethiopian Airlines CEO Mesfin Tassew and representatives of Dar Al-Handasah which is a specialized engineering firm signed an agreement for the design and consultancy works associated with the carrier’s monumental airport project. It is also important to note that Dar Al-Handasah Consultants is a partner of world-renowned Zaha Hadid Architects.
Bishoftu Airport Project Cost
The upcoming mega airport complex is expected to cost USD 7.8 billion. The African Development Bank (AfDB) is expected to act as a primary financier for the project. Furthermore, Finance Minister Ahmed Shide and Group executives submitted a letter of intent to AfDB last month.
AfDB Contribution on the Project
The amount that the bank will be committing to the project has not been revealed. However, its latest commitment is expected to grow its portfolio in Ethiopia, which stands at USD 1.2 billion across some key sectors.
Also read: Africa’s Biggest Airport Set to be Constructed in Ethiopia
Additionally, at the signing of a preliminary agreement in the month of March, AfDB chief Akinwumi Adesina referred to the Bishoftu airport city as the “flagship African project”.
Ethiopian Airlines executives envision the new airport handling over 100 million passengers annually by 2040. This number is more than four times the 17 million passengers passing through Bole International Airport at present.
Lastly, the government hopes it will be a boost to Ethiopia’s tourism industry and reaffirm its dominance in aviation in the African region.
Also read: Addis Ababa Bole International Airport Expansion Project Updates, Ethiopia
