Ethiopian Airlines seeks Saudi fuel deal

Ethiopian Airlines Group is seeking a short-term fuel supply arrangement with Saudi Arabia to mitigate volatile fuel prices, which threaten its approximately $30bn aircraft order backlog. The flag carrier is preparing a three-month fixed marginal price fuel contract aimed at providing price certainty rather than cheaper supplies. Fuel costs have surged from 40% to 56% of operating expenses within a year, according to the airline. Industry analysts estimate Ethiopian Airlines spends $2.2bn-$2.4bn annually on fuel and consumed around 3.2bn litres of jet fuel last year.