By Benadeta Mwaura - Reporter
Ethiopia, June 08, 2026 - Ethiopian Airlines’ move to require U.S. dollar payments for ticket sales in Sudan has triggered fresh debate over currency sovereignty, foreign exchange shortages and the growing pressure facing airlines operating in fragile monetary environments.
The policy, which requires passengers in Port Sudan to pay for tickets in cash dollars instead of Sudanese pounds, comes at a time when Sudan’s currency has sharply depreciated and access to hard currency has become increasingly constrained.
Travellers and industry stakeholders say the shift has made air travel more expensive and complicated for ordinary citizens, forcing some passengers to source dollars from parallel markets simply to complete bookings.
The airline’s decision reflects a broader financial reality facing carriers operating in economies where local currencies are weakening rapidly and repatriation of foreign earnings remains uncertain.
In Sudan’s case, the pound has undergone steep depreciation, with limited dollar liquidity available through formal banking channels.
Passengers interviewed by regional media described frustration at being unable to pay in local currency, arguing that the requirement effectively excludes those without access to hard currency and pushes them into informal exchange markets at higher rates.
At the heart of the controversy is a deeper structural tension: airlines earn revenue locally but incur significant operational costs in dollars.
Fuel, aircraft leasing, maintenance, navigation services and spare parts are all dollar-denominated costs, leaving carriers highly exposed to currency volatility in markets with weak foreign exchange reserves.
For Ethiopian Airlines, which operates across multiple African jurisdictions, the Sudan policy reflects an attempt to manage foreign exchange risk and protect revenue value in environments where local currencies are rapidly losing purchasing power.
But critics in Sudan argue the approach may deepen pressure on the local currency itself. By increasing demand for physical dollars, the policy risks reinforcing informal currency markets and accelerating depreciation dynamics.
Legal and regulatory questions have also emerged.
Sudanese aviation stakeholders argue that foreign airlines operating domestically are still subject to national regulations on currency use, even if bilateral aviation agreements allow revenue remittance in convertible currencies.
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Some officials have urged regulators and central banks to intervene, warning that allowing foreign carriers to bypass local currency systems could undermine monetary policy and reduce state oversight over financial flows in strategic sectors.
The issue is not unique to Sudan.
Across Africa, airlines have repeatedly faced repatriation challenges, currency shortages and payment restrictions, particularly in countries experiencing economic instability or foreign exchange controls.
Ethiopian Airlines itself has previously highlighted the strain caused by operating in multiple currency environments, noting that its international operations are heavily dollar-dependent while domestic and regional markets often rely on weaker local currencies.
This dual exposure has forced many carriers in the region to adopt hybrid pricing models, linking ticket prices to exchange rates or shifting selectively toward hard-currency payments to preserve financial stability.
Analysts say the Sudan case reflects a broader structural shift in African aviation: a slow but steady dollarisation of air transport markets in countries facing currency crises.
While this may stabilise airline revenues, it risks making air travel less accessible in local markets already under economic pressure.
For Sudanese passengers, the immediate impact is simple and direct: higher barriers to travel and increased reliance on volatile informal exchange systems.
For regulators, the challenge is more complex, balancing currency sovereignty with the operational realities of a global aviation industry that increasingly runs on hard currency liquidity.
As currency pressures deepen across parts of the continent, similar disputes are likely to emerge elsewhere, placing airlines, governments and passengers on opposite sides of a growing economic fault line.
Ethiopian Airlines’ dollar-only policy stands as both a financial safeguard for the carrier and a flashpoint in Sudan’s broader struggle with currency instability and economic fragmentation.