Ethiopian Airlines said it is still unable to access money earned from ticket sales in Eritrea, with Chief Executive Mesfin Tasew saying a substantial amount of the carrier’s revenue remains frozen because of the political dispute between the two countries.

Mesfin said the funds have remained inaccessible as relations between Ethiopia and Eritrea have deteriorated, preventing the airline from repatriating revenues generated from its operations in Eritrea. This is not the first time the airline chief has raised the issue, having previously highlighted the financial challenges caused by blocked funds and the broader deterioration in bilateral relations.

Mesfin said the Airlines had exhausted all available legal avenues in Eritrea to recover the funds. “We pursued legal measures through the Eritrean courts, but those efforts were unsuccessful. Therefore, the issue is a political one,” he said.

The exact amount of money currently inaccessible was not disclosed. However, previous reports have indicated that the airlines had around US$3 million in funds held in Eritrea.

Similar accusations have been made against Eritrea in the past, with the International Air Transport Association (IATA) saying the country was withholding around US$450 million in revenues owed to international carriers operating there, largely due to foreign exchange shortages.

The dispute over frozen funds came amid deteriorating aviation ties between Ethiopia and Eritrea. Ethiopian Airlines suspended flights to Asmara in September 2024, citing difficult operating conditions after Eritrean authorities ordered the carrier to halt services.

The relationship between Ethiopia and Eritrea is currently tense and fragile, after a period of dramatic improvement following the 2018 peace agreement. The two countries moved from decades of hostility to cooperation, but relations have deteriorated significantly in recent years.