Etihad Airways Posts AED 1.4 Billion Profit for 9M 2024, Up 66% YoY

Etihad Airways recently announced its financial results for the nine months ended 30 September 2024, achieving AED 1.4 billion (U.S.$ 368 million) profit after tax, a significant increase from AED 814 million (U.S.$ 222 million) during the same period in 2023.

The strong results reflect the airline’s ongoing strategy of driving growth across the business alongside optimising operational efficiencies and improving customer service.

Total revenue increased 21 per cent to AED 18.4 billion (U.S.$ 5.0 billion) in the first nine months of 2024, up from AED 15.1 billion (U.S.$ 4.1 billion) in the same period last year. This growth was driven by a strong summer season as a consequence of the successful execution of our network expansion strategy, alongside significant growth in the cargo business, particularly in the third quarter of the year.

Passenger revenue increased by 21 per cent, reaching AED 15.2 billion (U.S.$ 4.1 billion), driven by strategic network expansion and increased flight frequencies that further enhanced connectivity. Etihad carried almost 14 million passengers over the first nine months of the year, a 35 per cent increase year-on-year, with Available Seat Kilometres (ASK) reaching 68.2 billion, up 31 per cent year-on-year. The average passenger load factor stood at 87 per cent for the nine months ended 30 September 2024, up from 86 per cent in the same period last year.

Cargo revenue rose to AED 3.0 billion (U.S.$ 808 million), up 21 per cent compared to the same period last year, driven by increased capacity, higher volumes and improved yields.

Operational efficiencies continued to improve, with unit costs decreasing year-on-year despite increased operating costs associated with growth and investments to enhance products and customer experience. Cost per Available Seat Kilometre (CASK) ex-fuel reduced by 8 per cent compared to the same period last year, highlighting Etihad’s ongoing commitment to efficiency and quality.

The overall passenger experience continued to improve, with customer satisfaction showing a sustained positive trend. Highlights included the introduction of Etihad’s fifth A380 and enhanced services supported by the new Terminal A at Zayed International Airport, along with expanded flight options in more convenient time slots, underscoring Etihad’s commitment to delivering a seamless and elevated travel experience for all guests.

Following the announcement of the airline’s Joint Business Agreement with China Eastern in the second quarter, Etihad Cargo extended its partnership with SF Airlines to boost UAE-China trade by enhancing capacity, transit times, and destination access.

Antonoaldo Neves, Chief Executive Officer of Etihad Aviation Group, said: “We are happy to report a strong performance for the first nine months of the 2024 financial year, with a 21 per cent increase in revenue and a 66 per cent increase in profit after tax compared to the same period in 2023. This impressive growth is driven by strong results in both passenger and cargo revenues, underscoring the effectiveness of our strategy and the strength of our growth trajectory, where we are also seeing ongoing improvements in customer satisfaction.

“Our operating fleet continues to expand, with all six A321NEOs scheduled for delivery in 2024 now in service. Despite the continued global aircraft shortage, our fleet has grown to 95 aircraft, an increase of 16 aircraft compared to the same time last year.

“Our rolling 12-month passenger count has reached nearly 18 million, marking an increase of nearly 80 per cent compared to 2022 and underscoring the pace of our growth over the past two years. We’ve also extended our network to 83 destinations as of September, up from 72 a year ago, with further growth expected by year-end.

“We are also proud to report that, alongside our growth, we continue to invest in and develop our people. This year, we successfully relaunched our cadet program and promoted more than 1,000 pilots and crew members, empowering them with the skills and experience needed to continue delivering excellence in service to our customers.

“We extend our heartfelt thanks to our customers for their continued trust and support. We are committed to enhancing their travel experience to be the airline that everyone wants to fly.

“I also want to express my sincere gratitude to our team. Their hard work and dedication at every point of our customer journey and coming together for a purpose has been crucial in achieving these results. Together, we’ve made a significant impact, and I thank them for their commitment.”

Key 9M 2024 highlights at a glance:

Total revenue increased by 21 per cent year-on-year to AED 18.4 billion, driven by strong performances in both passenger and cargo business

Passenger revenue saw an increase of AED 2.6 billion (21 per cent increase year-on-year), fuelled by a robust summer season, strategic network expansion, and increased frequencies in key markets

Cargo revenue rose by 21 per cent year-on-year due to expanded capacity, higher volumes (up 14 per cent), and improved yields during the third quarter of 2024

Despite increased operating costs from growth and ongoing investments to enhance products and customer experience, unit costs are declining; CASK ex-fuel decreased 8 per cent, underscoring Etihad’s commitment to operational efficiency while continuously elevating its offerings

Profit after tax increased by 66 per cent year-on-year, driven by strong revenue growth and ongoing operational efficiencies

ASK and passenger numbers grew by 31 per cent and 35 per cent year-on-year respectively, reflecting strong market momentum.

All six A321NEOs scheduled for delivery in 2024 entered service, increasing the overall fleet size by 16 aircraft compared to September 2023, introducing a new fleet type to enhance the customer offering.

Increased total number of destinations to 83 as of September 2024, from 72 in September 2023.