Etihad Airways announced a successful start to 2024 with a net profit of AED 526 million (U.S.$ 143 million) for the first quarter, showing a strong improvement from Q1 2023. The airline’s total revenue saw a notable increase, growing by AED 987 million (U.S.$ 269 million) from AED 4,752 million (U.S.$ 1,294 million) in Q1 2023 to AED 5,739 million (U.S.$ 1,563 million) in Q1 2024. This growth is due to higher network capacity and increased passenger numbers.
In this quarter, Etihad carried 4.2 million passengers, which is a 41% year-on-year rise. The average passenger load factor stayed at 86%, the same as the previous year. Cargo revenue and other income sources remained steady during this period. The airline also achieved better operational efficiency, reducing unit costs (CASK) by 9% and CASK ex-fuel by 11% compared to the same quarter last year.
Antonoaldo Neves, Chief Executive Officer of Etihad Airways, highlighted the positive performance, saying, “We are pleased to report a strong start to the financial year 2024, with our first quarter earnings equivalent to our total net income for the entire financial year 2023 as we continue our margin expansion journey. We have maintained our resilience and our focus on customer service and growth while continuing to improve our commitment to efficiency.”
Neves pointed out that the profit increase occurred despite the holy month of Ramadan starting earlier in March this year, demonstrating the business’s adaptability. He added that Etihad plans to expand its network and improve its offerings to connect more people through Abu Dhabi. Neves thanked the employees for their hard work and dedication in achieving these results.
Network Expansion and New Destinations
In the first quarter, Etihad optimized its network by enhancing existing routes and increasing frequencies to key destinations. The airline launched new flights to Thiruvananthapuram, Kozhikode, and Boston, and announced additional routes to Antalya and Jaipur. This expansion led to a 34% increase in total weekly flights for the upcoming peak summer period, growing from 642 last year to 858 in 2024.
Etihad played a vital role in supporting Abu Dhabi’s tourism sector, driving a 43% increase in inbound point-to-point traffic compared to the first quarter of 2023.
Operating from its new terminal at Zayed International Airport, Etihad saw improvements in customer satisfaction due to better efficiencies across all passenger touchpoints. Upgraded lounge facilities now offer more comfort and exclusive services, enhancing the travel experience. Additionally, streamlined check-in processes and smoother transfers positively impacted customer feedback.
Key Achievements in Q1 2024
- Revenue Growth: Total revenue increased mainly due to a rise in passenger revenue, which grew by AED 966 million (U.S.$ 263 million), a 25% increase from the previous year.
- Cargo Revenue: Cargo revenue remained strong year-on-year, supported by expanding partnerships, including a strategic agreement with SF Airlines to connect global hubs and extend Etihad’s network in Asia.
- Cost Efficiency: Operational efficiency improved with CASK and CASK ex-fuel decreased by 9% and 11% respectively.
- Profit After Tax: The surge in passenger revenue, along with reduced net finance costs, raised the profit after tax to AED 526 million (U.S.$ 143 million), up from AED 59 million (U.S.$ 16 million) in Q1 2023.
- Capacity Growth: The first quarter saw a 35% increase in Available Seat Kilometers (ASK) and a 41% increase in passenger numbers compared to Q1 2023.
- Fleet Expansion: Etihad’s operating fleet grew from 75 to 89 aircraft, including three new 787s added in February 2024.
Etihad Airways’ strong performance in Q1 2024 shows its commitment to growth, operational efficiency, and customer satisfaction.
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