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Ethiopian Airlines, one of Africa’s largest airlines, has been awarded a $159 million financing package by the African Development Bank to fund the airline’s expansion and fleet modernization programme, according to a statement released by the AfDB on Thursday.

The AfDB’s financing package comes weeks after the International Air Transport Association (IATA) forecasted that African airlines are expected to post a net loss of $800 million in 2017 due to a number of regional conflicts and the impact of low commodity prices.

“The Bank’s support will allow Ethiopian Airlines to keep the momentum on its expansion plan and be on track on its route operating roadmap,” the AfDB said. “Ethiopian Airlines is setting the standards for the aviation sector in Africa and operates a modern and fuel efficient fleet.”

The Addis Ababa-based airline will receive the financing package in two tranches. The first tranche (about 85 per cent of the package) will be covered by the African Trade Insurance Agency, Africa’s export credit agency, which is also providing credit risk insurance to the transaction.

“This corporate loan complements previous interventions approved by the African Development Bank in support of developing the aviation sector on the continent, both from its public and private sector windows,” the AfDB said. “It is also a testimony of the Bank’s catalytic role in improving the operating environment and financial soundness of the aviation sector in the continent.”

Founded in 1945, Ethiopian Airlines is the fastest-growing airline in Africa, flying to 95 international destinations with a fleet of 83 aircrafts. In 2014, the International Air Transport Association ranked the state-owned airline as the largest airline in Africa in terms of revenue and profit.

Ethiopian Airlines is currently implementing a 15-year strategic plan called Vision 2025 aimed at making the airline the leading aviation group in Africa with business centres covering passenger services, cargo services, maintenance, ground handling, catering and training with the aviation academy.