The general objective of this study is to assess factors affecting the performance of outsourcedrnlogistics activities, in the case of Ethiopian airlines. The study employed explanatory type ofrnresearch design. The target population for this study was all employees of Ethiopian Airlinesrnwho work in the logistics department. Both primary and secondary data is used for this study.rnCollected data is analyzed by using inferential and descriptive statistics technique with arncomputer program called the statistical package for social science (SPSS), version 23. Findingrnof this study indicates that Ethiopian airlines has outsource logistics service that is notrnmaximized as desired due to factors such as loss of control over the logistics service providers,rnhigher cost and longer time taken to select third party logistics provider, high level delay ofrncustomer order delivery, and ineffective relationship between management and third partyrnlogistics provider performance evaluation. The correlation result indicates that there arernrelationships between the measures of impact on the performance of outsourced activities andrnreasons for outsourcing logistics activities that have direct implication to all factors. Thernresearcher acknowledges that the existing outsourcing of logistics services is benefiting thernEthiopian airlines. Recommendations of the researcher mainly focus on how the Ethiopianrnairlines could maximize its outsourcing activity for more effective profitability. Particularly, it isrnrecommended that Ethiopian airlines should outsource only necessary aspects of business tornavoid reduction in profitability. Also; the department of logistics should avoid adoption ofrninappropriate outsourcing strategies that negatively affects corporate profitability. Thesernconcerns indicate that there is need for future research study which may bridge the gap in thesernlimitations.