Andinet Worku (PhD)Ephrem Tadele2025-07-302025-07-302024-10https://etd.aau.edu.et/handle/123456789/5845This study investigates the mediating effect of customer satisfaction in the relationship between air freight service quality and customer loyalty in Ethiopian cargo and logistics services. The importance of this study is to fill the knowledge gap for academicians might fill the literature gap by referring to the major findings of this study and raising awareness of ECLS regarding the relationship between service quality, customer satisfaction, and customer loyalty. This study sampled 212 respondents of ECLS who are registered as shipper customers. Out of the 212 questionnaires,202 (95%) were completed and returned. This study used both stratified and convenience sampling methods. To collect data from the respondents, a close-ended questionnaire with five-point Likert scales was applied. The researcher used quantitative data, which was coded and analyzed using SPSS 26 statistical software. Mediation analysis is also carried out using Hayes process macro model 4. The developed model aimed to measure customer loyalty by implementing service quality in the air freight services through customer satisfaction as a mediator in Ethiopian cargo and Logistics and Services. According to the study's findings (b=0.7163, p = 0.000), the service quality multi-regression coefficient result had a positive and significant impact on customer loyalty. Customer satisfaction is positively and significantly impacted by services quality (b=1.2380, p = 0.000). Similarly, customer satisfaction significantly and positively influences customer loyalty ( b=0.3229, p =0.000), finally, The indirect effect of service quality on customer loyalty through customer satisfaction is (b 0.3998 p < 0.001). Bootstrap Confidence Intervals (BootLLCI and BootULCI): The 95% bootstrap confidence interval for the indirect effect ranges from 0.1721 to 0.6181. Since the indirect effect is statistically significant, we can conclude that there is a mediation effect. The result of this study on customer satisfaction supports the partial mediation of the relationship between service quality and Customer loyalty. The research implies that the company can prioritize delivering high-quality services which is likely to improve higher levels of customer satisfaction and loyalty. Service quality increases customer loyalty, which is indirectly influenced by customer satisfaction. Therefore, it is essential for Ethiopian cargo and logistics services to implement a service quality strategy and loyalty programs to maintain satisfied and loyal customers. Key Words: service quality; Customer satisfaction; Customer loyalty, Ethiopian cargo and logistics services, and mediation.en-USThesis