Etihad’s H1 profit surges 48% to Dh851m

Total revenue increased 21% to Dh11.7 billion

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Published: Thu 8 Aug 2024, 5:16 PM

Last updated: Thu 8 Aug 2024, 5:21 PM

Etihad Airways recorded a 48 per cent increase in profit after tax at Dh851 million driven by strong passenger and cargo revenue growth in the first six months of 2024.

Total revenue increased 21 per cent to Dh11.7 billion, from Dh9.6 in H1 2023, mainly due to passenger revenue, which saw a 24 per cent year-on-year increase, reflecting strong demand fuelled by strategic network expansion and increased flight frequencies, consequently further improving connectivity, the carrier said in a statement.

In the first half, there was also a notable 10 per cent increase in cargo revenue compared to the same period of 2023, primarily driven by higher demand and higher cargo capacity of the fleet.

Antonoaldo Neves, chief executive officer of Etihad Aviation Group, said the strong performance reflected a robust performance in both passenger and cargo revenues, demonstrating the soundness of our strategy and growth path.

“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 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.

Mohammed Ali Al Shorafa, chairman of Etihad Aviation Group, said the airline is preparing to further expand its network and enrich its 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 per cent of the total 13.7 million passengers at Zayed International Airport from January to June 2024. This total represents an approximate 34 per cent 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.”

Al Shorafa said the carrier 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."

The Abu Dhabi based airline carried 8.7 million passengers over the first half of the year, up 38 per cent year-on-year, which is approximately three-times higher than Iata’s reported average growth rate of 13 per cent for Middle Eastern carriers in the same period. The average passenger load factor stands at 85 per cent for H1 2024 and remains unchanged compared to the first half of last year, the statement said.

“Etihad continued to enhance its global network by adding new destinations and increasing capacity, as well as expanding partnerships. In the first half of the year, the airline signed a landmark joint venture with China Eastern, marking the first commercial agreement of its kind between a Middle Eastern and Chinese airline.

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