Geopolitical pressures force Ethiopian Airlines to raise freight tariffs by 20%, hitting horticulture exports
Air freight pricing follows a tiered structure in which per-kilogram rates decrease as shipment volumes increase.
ETHIOPIA – Geopolitical pressures have forced Ethiopian Airlines to raise freight tariffs by 20%, directly hitting the country’s horticulture export sector.
Ethiopian Airlines has revised cargo tariffs, effective April 2026, with a 20% increase for perishable exports under the Price Class PEF.
For more than two decades, Ethiopian Airlines has sustained the country’s horticultural export model by providing reliable cargo capacity, competitive pricing, and efficient connections to European and Middle Eastern markets.
According to Mekonnen Solomon, Horticultural Export Coordinator at the Ministry of Agriculture, “the airline has enabled Ethiopia to position itself as a reliable origin for perishable exports through speed, connectivity, and cost efficiency.”
However, rising fuel, insurance, and operational costs linked to regional instability have forced the revision. “This adjustment, while operationally justified, places additional pressure on an already cost-sensitive export system,” Mekonnen said.
Air freight pricing follows a tiered structure in which per-kilogram rates decrease as shipment volumes increase. While large fresh produce exports move in consolidated volumes, smaller shipments in the +45 kg and +100 kg tiers will face proportionally higher cost impacts.
As a result, the tariff revision affects key export corridors, including Paris Charles de Gaulle, Frankfurt Airport, and Dubai International Airport. These routes are critical to maintaining cold-chain integrity for greenhouse vegetables such as tomatoes, peppers, and herbs.
“Our export pricing frameworks were established under assumptions of relatively stable freight costs. The current increase introduces a gap between production costs and market expectations.”
Further, Mekonnen advocates coordinated sector engagement. “Structured dialogue between logistics providers, policymakers, and exporters is essential to align short-term responses with long-term sector stability.”
Potential measures include targeted freight support, improved shipment consolidation, and exploration of supplementary cargo capacity.
“There is scope to develop more resilient contractual frameworks that account for volatility in fuel and currency markets, as well as to strengthen collaboration with international buyers.”
The situation exposes a broader dependency on a single dominant logistics provider. “Reliance on one primary carrier creates efficiency, but also concentration risk under volatile global conditions.”
For horticulture exporters, the coming months will determine whether this is a temporary adjustment or a longer-term structural shift.
Smaller growers supplying greenhouse operations face indirect impacts if export volumes decline, highlighting the need for coordinated sector engagement to maintain Ethiopia’s competitive edge in European and Middle Eastern markets.
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