Kassie, Abebaw (PhD)Solomon, Kirubel2018-11-012023-11-042018-11-012023-11-042015-06http://etd.aau.edu.et/handle/123456789/13552The purpose of the study is to show factors that determine Ethiopian Airlines profitability. The dependent variable profit was regressed against the independent variables load, yield on the demand side and available seat kilometer (ASK), labor cost, fuel cost, maintenance cost, renting or leasing cost on the supply side to show which factor determine profitability. The study used explanatory research design and the model used was error correction model to show the impact of the independent variables on the dependent variable in the short run and long run. The study used annual secondary data from 1987-2014 which was obtained from Ethiopian airlines statistics office. The data was analyzed using time series econometrics methodology. The analysis is done by using E-views. The result revealed that the demand side variables have large contribution over the supply side variables by affecting Ethiopian Airlines profitability positively. Load and yield have a great contribution in the short run while ASK has a great contribution in the long run. Finally, it is recommended that the airline should have more concern to the demand side which greatly contributes to their profitability as compared to supply side.enProfitability of EthiopianThesis