Etihad Airways reports 48 percent increase in half year profits
Etihad Airways reports 48 percent increase in half year profits
Etihad Airways has announced its H1 2024 results, recording a 48 percent increase in profit after tax achieving AED 851 million (U.S.$232 million), a significant increase from AED 575 million (U.S.$157 million) in H1 2023, highlighting the airline’s continued focus on growth coupled with optimizing operational efficiencies.
Total revenue increased 21 percent to AED 11.7 billion (U.S.$3.2 billion), from AED 9.6 billion (U.S.$2.6 billion) in H1 2023, primarily due to passenger revenue, which saw a 24 percent year-on-year increase, reflecting strong demand fuelled by strategic network expansion and increased flight frequencies, consequently further improving connectivity.
Etihad carried 8.7 million passengers over the first half of the year, up 38 percent year-on-year, which is approximately three times higher than IATA’s reported average growth rate of 13 percent for Middle Eastern carriers in the same period. The average passenger load factor stands at 85 percent for H1 of this year and remains unchanged compared to the first half of last year.
Operational efficiencies continued to improve with decreasing unit cost from the same period last year, with CASK (cost per seat kilometre) and CASK ex-fuel reduced by five per cent and eight per cent, respectively. At the same time, overall passenger experience improved, continuing the trend of increased customer satisfaction since consolidating operations in the new terminal.
“We are pleased to report a strong first half of the 2024 financial year, with profit after tax 48 per cent 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,” said Antonoaldo Neves, Chief Executive Officer of Etihad Aviation Group.
Neves added, “Notwithstanding global aircraft shortage, we have 16 more aircraft in our fleet of 92 than at the same point last year, including three A321neos. We are bringing six A321neos into operation this year, equipped with advanced CFM LEAP1A engines. 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 percent 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, working together for a purpose, have been instrumental in achieving these results.”
His Excellency Mohammed Ali Al Shorafa, Chairman of Etihad Aviation Group, said: "Our dedication to customer service remains steadfast as we prepare to further expand our network and enrich our services, connecting more individuals to and through Abu Dhabi. Etihad’s 8.7 million passengers in the first half of the year accounted for over 63 percent of the total 13.7 million passengers at Zayed International Airport from January to June 2024. This total represents an approximate 34 percent 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.
"Etihad continues to play a pivotal role in advancing Abu Dhabi's tourism and economic development. Our strategic growth and network expansion not only bolster the connectivity of our capital but also significantly contribute to the prosperity of the UAE's economy. We are committed to further enhancing our services and expanding our reach, ensuring Abu Dhabi remains a key global travel hub."
In July, credit rating agency Fitch upgraded Etihad’s rating to an A+ status, citing its materially stronger standalone credit profile.
