Ethiopian Airlines will probably decide within the next three months on an order for 25 smaller commercial jets to expand its local network, CEO Mesfin Tasew Bekele said late on Saturday at a gathering of airline executives in Brazil.

Africa’s largest carrier, which operates 147 aircraft, is looking at the Airbus A220, the Embraer E-2, and the Boeing 737 MAX 7, which is expected to be certified by the U.S. Federal Aviation Administration this year.

The planes would be used on both domestic routes and on flights around neighbouring countries.

“There are some issues, but probably within a matter of three months,” Bekele said of the timing of a decision. Bekele did not specify the issues.

The A220 programme remains in the red and has faced stiff competition from Brazilian ‌rival ⁠Embraer.

Like other carriers, Ethiopian Airlines has been wrestling with higher fuel prices due to the war in Iran and it has cut Middle East flights to meet lower passenger demand, such as reducing frequency to ⁠Dubai from three flights to two a day, he said.

System-wide, the carrier is spending about 60% more on jet fuel, although it has managed to resolve concerns about shortages.

“We have addressed the supply issue. It is okay now,” he added on the sidelines of the ⁠International Air Transport Association's (IATA) annual summit this weekend in Rio de Janeiro. “But the price issue is a serious issue.”

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Ethiopian Airlines to decide on small plane order in next three months

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