Etihad Airways Reports Half Year Profit, Reaffirms Growth Plans

On Thursday, Etihad Airways reported results for the first half of the current year. While some carriers are reporting softening of yields, the Abu Dhabi-based airline is becoming a profitable champion of growth.

Strong Performance

Etihad carried 8.7 million passengers in the first half of 2024, racking up $2.64 billion USD in passenger revenue. The numbers are up 38% and 24% year-over-year respectively. If continued on the same path, the carrier is going to get close to its peak annual passengers carried number from 2017 when it hit 18.6 million. Now, after a significant transformation, it’s a different airline, putting profitable growth as a key condition for future expansion. The reported profit after tax surged to $232 million USD in H1 2024 and was up 48% from last year’s result.

Etihad’s cargo business is on a growing trajectory as well. The carrier reported a notable 10 percent increase in cargo revenue compared to the same period of 2023, reportedly driven by higher demand and higher cargo capacity of the fleet.

The most promising takeaways from the report come from the operational efficiencies. The airline reported reducing its CASK (Cost per Seat-Kilometer) by five percent year-over-year and, even more impressively, reducing CASK ex-fuel by eight percent year-over-year. This means, that despite being located in the Middle East, the carrier faced headwinds on its fuel cost, yet managed to still reduce its operating costs overall.

An Etihad Airways Boeing 787-10 Dreamliner. (Photo: AirlineGeeks | William Derrickson)

Earlier this year, Etihad outlined its fleet plan. The carrier is committed to staying nimble with operationally effective aircraft types. The carrier still holds significant orders for Boeing 787 Dreamliner and Airbus A350-1000 widebody aircraft.

Antonoaldo Neves, Chief Executive Officer of Etihad Aviation Group, reaffirmed the carrier’s growth plans for the next year: “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.”

According to Plan

Etihad Airways is a centerpiece in the Abu Dhabi Economic Vision 2030. The carrier grew its network from 70 to 81 destinations over the last year carrying 2.14 million point-to-point passengers. It is a growth of 33% year-over-year and most of the airline’s destinations are not being served by any other airline. This is a great way to contribute towards Abu Dhabi’s goals of economic prosperity and tourism expansion.

The cooperation is a symbiosis relationship as the carrier benefited greatly from the new Terminal A at Zayed International Airport. 

Etihad Airways network in June 2024 (Photo: flightconnections.com)

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 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.”

“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.”

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Filip Kopeć

A passionate aviation enthusiast that started off his career as an aerospace engineer, but found his true calling on the commercial side of the airline business. Now as a finance guy among avgeeks and an avgeek among finance guys, he has experience working in the Revenue Divisions of three airlines. In his spare time he enjoys traveling, but admittedly sometimes is more about the journey than the destination.

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