Analysis of Financial Risk Management Practices at Ethiopian Airlines: Fuel Price, Currency, and interest Rate Risks
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Date
2025-05-29
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A.A.U
Abstract
This study Analyze the financial risk management practices of Ethiopian Airlines, focusing on
liquidity, operational, credit, and market risks. The research employs mixed method approach
with 140 employees’ surveys and documentary. Findings reveal that Ethiopian Airlines has
robust risk management frameworks in place, with effective strategies for liquidity and
operational risks, stringent credit evaluations, and proactive market risk mitigation through
hedging. Summary of the top findings, vulnerabilities during economic downturns and over reliance on certain international partners suggest areas for improvement. Recommendations.
Include adopting advanced forecasting tools, diversifying funding sources, enhancing training
programs and refining hedging strategies. The study underscores the importance of continuous
adaptation to global economic challenges to sustain the airline’s competitive edge and financial
resilience.