Etihad Airways has revealed its financial performance for the nine months ending on September 30, 2024, reporting a profit after tax of AED1.4 billion ($381 million). This marks a notable increase from AED814 million ($221.61 million) during the same timeframe in 2023.
Strategic focus on growth and efficiency
These impressive results highlight the airline’s strategic focus on fostering growth across its operations while enhancing efficiency and customer service. Total revenue surged by 21 percent to AED18.4 billion ($5 billion) in the first nine months of 2024, up from AED15.1 billion ($4.1 billion) in the previous year. This growth was propelled by a robust summer season, resulting from the successful execution of Etihad’s network expansion strategy, along with significant advances in the cargo sector, particularly in the third quarter.
Passenger revenue and connectivity expansion
Passenger revenue also increased by 21 percent, reaching AED15.2 billion ($4.1 billion), fueled by strategic network expansion and increased flight frequencies that improved connectivity. Over the first three quarters of the year, Etihad transported nearly 14 million passengers, representing a 35 percent year-over-year rise. Available Seat Kilometres (ASK) totaled 68.2 billion, reflecting a 31 percent increase compared to the same period last year. The average passenger load factor was 87 percent for the nine months ending September 30, 2024, up from 86 percent the previous year.
Cargo business growth
Cargo revenue climbed to AED3 billion ($808 million), marking a 21 percent increase from the same period last year, driven by enhanced capacity, higher volume, and improved yields.
Operational efficiencies and cost management
Operational efficiencies continued to improve, with unit costs decreasing year-on-year despite rising operating expenses linked to growth and investments aimed at enhancing products and customer experience. The Cost per Available Seat Kilometre (CASK) ex-fuel fell by eight percent compared to the previous year, underscoring Etihad’s dedication to efficiency and quality.
Enhancements in passenger experience
The overall passenger experience saw continued improvements, with customer satisfaction showing a consistent upward trend. Notable achievements included the introduction of Etihad’s fifth A380 and enhanced services backed by the new Terminal A at Zayed International Airport, along with expanded flight options at more convenient times, reinforcing Etihad’s commitment to providing a seamless and elevated travel experience.
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Strengthening trade partnerships
Following the announcement of the Joint Business Agreement with China Eastern in the second quarter, Etihad Cargo has expanded its partnership with SF Airlines to boost trade between the UAE and China by enhancing capacity, transit times, and access to destinations.
Antonoaldo Neves, chief executive officer of Etihad Aviation Group, expressed satisfaction with the strong performance for the first nine months of the 2024 financial year, noting a 21 percent increase in revenue and a 66 percent rise in profit after tax compared to the same period in 2023. He attributed this remarkable growth to strong outcomes in both passenger and cargo revenues, emphasizing the effectiveness of their strategy and the robustness of their growth trajectory, which is complemented by ongoing enhancements in customer satisfaction.
Fleet expansion and future growth
Neves highlighted the continued expansion of the operational fleet, mentioning that all six A321NEOs scheduled for delivery in 2024 are now in service. He pointed out that, despite the ongoing global aircraft shortage, the fleet has increased to 95 aircraft, up by 16 compared to the same time last year.
He reported that the rolling 12-month passenger total has reached nearly 18 million, representing an almost 80 percent increase from 2022, which underscores the rapid growth over the past two years. Additionally, he mentioned the network expansion to 83 destinations as of September, which is an increase from 72 a year ago, with further growth anticipated by year-end.
Commitment to workforce development
Neves also expressed pride in the airline’s commitment to investing in and developing its workforce, noting the successful relaunch of the cadet program and the promotion of over 1,000 pilots and crew members, which equips them with the necessary skills and experience to maintain excellence in service delivery.
He extended heartfelt thanks to customers for their unwavering trust and support, reiterating the airline’s dedication to enhancing their travel experience and striving to be the preferred airline.
Moreover, Neves conveyed sincere appreciation to the team for their hard work and dedication at every stage of the customer journey, emphasizing that their collaborative effort has been vital in achieving these results. He acknowledged the significant impact they have made together and expressed gratitude for their commitment.
