Ethiopia's national army battled fighters from the Tigray People's Liberation Front (TPLF) party for two years until late 2022 in a conflict that killed over half a million people and displaced millions more.
Clashes broke out in the territory's disputed western part earlier this week, according to diplomatic and government sources.
"As of today, all flights have been cancelled," the official for Ethiopia's national carrier told Reuters, without giving a reason.
One resident of Tigray's capital Mekelle said hundreds of people started queuing up to withdraw money on Thursday but that many banks were out of cash.
"I went to three Commercial Bank of Ethiopia branches to withdraw some money but I was told they had no cash.... I have checked all ATMs in the town to withdraw cash, but all of them were empty," he said.
The Tigray war ended in a November 2022 peace pact but disagreements have been festering over a range of issues including contested territories in western Tigray and delayed disarmament of Tigrayan forces.
(Reporting by Nairobi newsroom; Writing by Elias Biryabarema; Editing by Ros Russell and Andrew Cawthorne)
Ethiopian Airlines ET-AVJ takes off. (Photo: Wikimedia)