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STORY: Ethiopian Airlines said on Tuesday it had suspended flights to neighboring Eritrea because its bank account there was frozen.

CEO Mesfin Tasew said the Eritrean Civil Aviation Authority had blocked money transfers from the company's account in the capital city Asmara.

He said that if the company cannot make payments for the services that keep the flights going from the money collected by selling tickets, the flights would not be able to continue.

Eritrea had previously said it would suspend all Ethiopian Airline flights at the end of September.

Ethiopia and Eritrea severed ties in 1998 when a two-year war broke out over their disputed border.

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Flights resumed in 2018 following a peace deal and resumption of diplomatic relations.

Five diplomats told Reuters the suspension of flights signaled relations between the two countries had soured significantly but that the risk of conflict was unlikely for now.

Ethiopian Airlines said in a statement that it would try to rebook affected passengers on other airlines at no additional cost or offer refunds.

According to the International Air Transport Association Ethiopian is the largest airline in Africa by revenue and profit.