In an impressive display of resilience and strategic foresight, Etihad Airways has reported a substantial 48% increase in profits for the first half of 2024, marking a significant milestone in the airline’s growth trajectory. The airline’s profit after tax reached a staggering AED 851 million (approximately USD 232 million), a notable leap from AED 575 million (USD 157 million) recorded in the same period last year. This robust performance is a testament to Etihad’s meticulous strategy of expanding its global footprint while enhancing operational efficiencies.
Record-Breaking Revenue Growth
Etihad Airways has experienced a remarkable surge in revenue, climbing 21% year-on-year to AED 11.7 billion (USD 3.2 billion) from AED 9.6 billion (USD 2.6 billion) in H1 2023. This growth is primarily driven by a 24% increase in passenger revenue, as the airline successfully capitalized on heightened demand and strategic network expansion. The airline’s ability to adapt and thrive in a competitive market has been a key factor in its success, with an increase in flight frequencies further boosting connectivity across its network.
Passenger Numbers Reach New Heights
During the first half of 2024, Etihad Airways transported 8.7 million passengers, marking a 38% year-on-year increase. This impressive figure stands well above the International Air Transport Association’s (IATA) reported average % growth rate of 13% for Middle Eastern carriers in the same period. The airline’s average passenger load factor remained robust at 85%, unchanged from the previous year, underscoring its efficiency in maximizing seat utilization.
His Excellency Mohammed Ali Al Shorafa, Chairman of Etihad Aviation Group, emphasized the airline’s critical role in bolstering Abu Dhabi’s economy and tourism. “Etihad’s 8.7 million passengers in the first half of the year accounted for over 63% of the total 13.7 million passengers at Zayed International Airport from January to June 2024. This total represents an approximate 34% increase in passenger numbers through the airport compared to the first half of 2023, highlighting the key role the airline plays in boosting Abu Dhabi’s tourism and trade.”
Cargo Revenue Boosts Performance
In addition to passenger revenue, Etihad Airways reported a 10% increase in cargo revenue compared to the first half of 2023. This growth was driven by higher demand and the enhanced cargo capacity of its fleet. The airline’s ability to respond to global market demands while maintaining operational excellence has been a cornerstone of its success.
Fleet Expansion Fuels Growth
The expansion of Etihad’s fleet has been a critical driver of its operational success. In the first half of 2024, the airline added three new aircraft to its fleet, bringing the total number to 92, including three state-of-the-art A321neos equipped with advanced CFM LEAP 1A engines. By the end of the year, Etihad expects to introduce six A321neos, contributing to over 20 new generation aircraft by the close of 2025. These new aircraft, which offer reduced emissions and up to 20% more efficiency than previous models, are expected to play a pivotal role in Etihad’s sustainability goals.
Antonoaldo Neves, Chief Executive Officer of Etihad Aviation Group, expressed his confidence in the airline’s growth trajectory. “We are pleased to report a strong first half of the 2024 financial year, with profit after tax 48% higher than the net result reported in the same period of 2023. This reflects a robust performance in both passenger and cargo revenues, demonstrating the soundness of our strategy and growth path.”
Neves continued, “Notwithstanding global aircraft shortages, we have 16 more aircraft in our fleet of 92 than at the same point last year. In the next 18 months, we expect to add more than 20 new generation aircraft to our fleet, which offer reduced emissions and up to 20% more efficiency compared to previous models. I extend heartfelt gratitude to our people, whose hard work and dedication in the air and on the ground have been instrumental in achieving these results.”
Strategic Expansion and New Partnerships
Etihad’s strategic network expansion continued briskly in the first half of 2024. The airline added 11 new destinations, increasing its total number of destinations from 70 to 81. New routes include Bali, Thiruvananthapuram, Kozhikode, Boston, Jaipur, and Al Qassim and seasonal favourites such as Nice, Antalya, Mykonos, Santorini, and Malaga.
In a landmark move, Etihad signed a joint venture agreement with China Eastern Airlines, marking the first commercial agreement between a Middle Eastern and Chinese airline. This partnership will significantly enhance connectivity between the two regions, driving further passenger numbers and cargo volume growth.
Operational Efficiencies Drive Success
Etihad’s commitment to operational excellence is reflected in its efforts to reduce costs. The airline reported a 5% reduction in Cost per Available Seat kilometres (CASK) and an 8% reduction in CASK excluding fuel, compared to last year. These efficiency gains are crucial as the airline continues to scale its operations while maintaining high service standards.
Consolidating operations in the new terminal has enhanced the overall passenger experience, increasing customer satisfaction. Etihad’s focus on optimizing its operations and delivering exceptional service remains central to its strategy for sustained growth.
Looking Ahead
With Fitch recently upgrading Etihad’s credit rating to A+ status, the airline is well-positioned to continue its upward trajectory. This upgrade reflects Etihad’s stronger standalone credit profile, bolstered by its robust financial performance and strategic expansion plans.
As Etihad Airways continues to soar to new heights, its unwavering commitment to excellence, innovation, and sustainability remains at the heart of its success. With ambitious plans for fleet expansion, network growth, and enhanced customer experiences, the airline is poised to cement its position as a global leader in the aviation industry, contributing to the prosperity of Abu Dhabi and the UAE.
For further information on Etihad’s growth strategy and operational performance, visit the official website of Etihad Airways.
Written by: Michelle Warner
