Ethiopian Airlines (ET, Addis Ababa International) has signed a joint business agreement with Etihad Airways (EY, Abu Dhabi International) aimed at giving the heavyweight carriers access to each others' networks across Africa, the Middle East, and Asia.

Signed in the Ethiopian capital on March 19, 2025, the agreement will see Ethiopian Airlines begin direct daily flights from Addis Ababa International to Abu Dhabi International from July 15, followed by Etihad launching non-stop flights to Addis Ababa from its Abu Dhabi hub from October 1, the carriers said in a press release. Etihad plans to deploy A320 Family aircraft on its Addis route, while Ethiopian will use A350-1000s and B777s.

The joint venture will give the Gulf-based carrier access to Ethiopian's network of major African cities, while Ethiopian will have access to key cities in the UAE and Asia.

Etihad Airways CEO Antonoaldo Neves said the agreement will also allow the two airlines to cooperate on frequent flyer programmes, crew training, and cargo operations.

According to the ch-aviation fleets module, the Gulf carrier currently operates a fleet of 105 aircraft, including fourteen A320-200s, one A320-200N, nine A321-200s, four A321-200Ns, two A321-200NX, five A350-1000s, ten A380-800s, five B777-200Fs, nine B777-300ERs, ten B787-10s, and thirty-three B787-9s.

Ethiopian Airlines, in turn, operates three A350-1000s, twenty A350-900s, two B737-700s, nineteen B737-8s, eight B737-800s, one B737-800(BBJ), one B737-800(BCF), three B737-800(SF)s, three B767-300ER(BDSF)s, two B767-300Fs, eleven B777-200Fs, six B777-200LRs, five B777-300ERs, nineteen B787-8s, ten B787-9s, and thirty DHC-8-Q400s.

The agreement comes in the wake of Eitihad's announcement in November 2024 that it plans to add another ten new routes to its network in 2025. The additional destinations include one in North America, two in northern Africa, and seven in Asia. The carrier has also been searching for domestic and international investors ahead of its planned IPO this year.

Ethiopian Airlines is also seeking to expand its reach. The carrier unveiled plans in October 2024 to begin operating flights to Australia within the next two years. Oceania is the only continent Ethiopian is not yet operating to directly, offering routes instead via codeshares. Separately, the airline is also reportedly mulling the possibility of taking an equity stake in cash-strapped South African Airways.