Etihad Airways profits surge 48% in first half

• Etihad Airways profit after tax surged 48% in the first half of the year to AED 851 million ($232 million) from the same period last year

• The airline cited strong passenger and cargo revenue for the profit rise

• Total revenues rose 21% to AED 11.7 billion ($3.2 billion)

• Cargo revenue increased 10% and cargo volume in tons jumped 16.8%

• 8.7 million passengers were carried in the first half, up 38%

Etihad Airways reported profit after tax of AED 851 million ($232 million) in the first half of 2024, up 48% from AED 575 million ($157 million) in the same period last year.

In a statement, Etihad Aviation Group chief executive officer Antonoaldo Neves cited “a robust performance in both passenger and cargo revenues” for the first half profits rise, alongside its continued focus on growth coupled with optimizing operational efficiencies.

Total revenue rose 21% to AED 11.7 billion ($3.2 billion) year-on-year, mainly due to passenger revenue, which saw an increase of almost AED 2 billion or 24%.

“This performance reflects the strong demand, the strategic network expansion, and the increased frequencies in key markets,” the airline said.

Cargo revenue increased by approximately 10% to AED 1.9 billion compared to the same period last year, mainly driven by higher demand and increased belly capacity of its fleet.

Cargo volume in tons totalled 320,000 in the first half, up 16.8%.

Passenger volumes soar

Etihad carried 8.7 million passengers over the first half of the year, marking a 38% year-on-year increase. The figure is said to be “approximately three-times higher than IATA’s reported average growth rate of 13% for Middle Eastern carriers in the same period,” according to the airline.

“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,” said Etihad Aviation Group chairman, His Excellency Mohammed Ali Al Shorafa, underscoring the key role the airline plays in boosting Abu Dhabi’s tourism and trade.

Operational efficiencies improved, with CASK (cost per seat kilometre) and CASK ex-fuel reduced by 5% and 8%, respectively.

Etihad’s operating fleet added 16 more aircraft in its fleet of 92 at the end of the first half, including three A321neos, a new type introduced into Etihad’s fleet.

“We are bringing six A321neos into operation this year, equipped with advanced CFM LEAP 1A 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 per cent more efficiency compared to previous models,” said Neves.

Etihad optimized its network by boosting connectivity and routes, as well as increasing frequencies to key destinations, resulting in the total number of destinations rising from 70 to 81. This includes new flights to Bali, Thiruvananthapuram, Kozhikode, Boston, Jaipur, and Al Qassim, along with seasonal favorites such as Nice, Antalya, Mykonos, Santorini, and Malaga.

In July 2024, ratings agency Fitch upgraded Etihad’s credit rating to an A+ status, citing its materially stronger standalone credit profile.