Ethiopian Airlines has suspended all flights to Asmara, the capital of Eritrea, effective September 3, citing "difficult operating conditions".
In a statement, the airline said it is facing challenges operating flights between Addis Ababa and Asmara that are outside of its control.
The move comes just over a month after Eritrea's Civil Aviation Authority announced on July 25 it would suspend all flights to the country from September 30.
In its notice, the Eritrean regulator accused Ethiopian Airlines of "consistent and malicious trading practices" harming passengers, including systematic luggage theft, damage and loss without compensation.
It also alleged unwarranted price hikes and other irregularities by Ethiopian on routes to Eritrea. Ethiopian contributes the majority of air traffic to Eritrea.
Passengers holding tickets to and from Asmara will be rebooked on other airlines at no extra cost or offered full refunds, Ethiopian said.
The suspension points to deteriorating aviation ties amid broader political tensions between the neighboring states in recent years.
