Etihad Airways announces highest-ever profit of Dhs1.7 billion in 2024

Etihad Airways on Wednesday announced its results for the full year 2024, recording strong performance across all key metrics with an Dhs1.7 billion ($476 million) profit after tax driven by Dhs20.8 billion ($5.7 billion) passenger revenue and Dhs4.2 billion ($1.1 billion) Cargo revenue, alongside significant operational efficiency improvements.

The airline carried 18.5 million passengers last year, a 32 per cent increase from the previous year, reflecting strong and sustained demand across its expanding network. This growth was supported by a 28 per cent year-on-year increase in Available Seat Kilometres (ASK) and an improved passenger load factor, which reached 87 per cent in FY24, compared to 86 per cent in 2023.

Total revenue saw a remarkable year-on-year increase of 25 per cent to Dhs25.3 billion ($6.9 billion). This growth was driven by a robust performance in both passenger and cargo business. Passenger revenue increased by Dhs4.2 billion ($1.1 billion), or 25 per cent compared to 2023, reflecting an enhanced network and increased capacity. Cargo revenue rose by 24 per cent compared to last year, fuelled by increased capacity and volume (12 per cent increase in cargo leg tonnes carried), alongside improved yields in the second half of the year.

In 2024, the airline expanded its operations to over 1,700 weekly flights and increased frequencies on 25 routes over the past two years. It also launched more than 20 new destinations, such as Boston, Jaipur, Bali, and Nairobi, alongside summer hotspots like Antalya, Nice, and Santorini, with over 10 of these cities set to begin operations in 2025. The airline’s operating fleet continued to expand with the addition of 12 aircraft, including the introduction of a new fleet-type, with six A320 NEOs, and the re-entry into service of its fifth A380. Etihad now operates the youngest and most fuel-efficient fleet in the region, supporting its ESG strategy to minimise carbon emissions while enhancing its service offerings.

The airline invested in customer experience enhancements, driving a significant NPS increase, reflecting higher operational and service satisfaction. In 2024, the airline approved an Dsh3 billion retrofit programme—its largest-ever—which, once underway, is expected to further elevate cabin comfort, inflight experience, and NPS. Etihad also introduced a dedicated premium call centre, delivering faster and more personalised service for premium travellers, leveraging AI to boost productivity. Over 200 enhancements were made to the website and app to further improve the guest experience. Additionally, the airline’s loyalty programme, Etihad Guest, reached a milestone of 10 million members.

Recognising these achievements, Etihad received multiple industry awards from bodies such as World Travel Awards and Business Traveller Awards, including Best Cabin Crew, Best Customer Experience, Best Economy Class, and Best First Class Lounge. It was also named Environmental Airline of the Year by AirlineRatings.com in 2024 for the third consecutive year.

Etihad’s team grew to over 11,000 employees, with more than 2,000 new hires and over 1,500 promotions. UAE National Talent initiatives progressed, with over 70 Emirati cadet pilots graduating and more than 3,000 applications received for the latest cadet programme.

UAE Nationals now represent 20 per cent of the workforce, underscoring Etihad’s support for the UAE talent strategy and its role in developing future aviation professionals.

Mohammed Ali Al Shorafa, Chairman of Etihad Airways, said, “We extend our gratitude to our guests and the dedicated Etihad family for allowing us to realise our ambitions and consistently delivering the reliable, best-in-class service that defines our operations. The unwavering commitment of our team has strengthened our airline, boosting efficiency while consistently improving our exceptional customer experience.

“As we expand our network and enhance our offerings, we remain focused on connecting more people with Abu Dhabi and supporting the Emirate’s tourism ambitions, fulfilling our vision to be the airline that everyone wants to fly.”

Antonoaldo Neves, Chief Executive Officer of Etihad Airways, said, “These results are testament to the dedication of our people who have worked together for a purpose, delivering our strategy. Their efforts have driven improvements in customer satisfaction measured across all cabin classes and numerous other touchpoints. Equally they have delivered sustainable, profitable growth while maintaining disciplined efficiency and a steadfast commitment to safety.

“Looking ahead, I am confident we will continue to be a financially strong airline delivering extraordinary customer experiences, fulfilling our shareholder’s mandate, and contributing to the long-term prosperity and success of the UAE.”

Throughout 2024, Etihad strengthened profitability and expanded margins through an optimised fleet and network, improved efficiency, and a continued focus on productivity. The airline continued to strengthen its network through 126 interline, codeshare, and strategic partnerships, including a landmark partnership with China Eastern, the first of its kind between a Middle Eastern and Chinese airline, and a strategic partnership with SF Airlines to boost logistics capacity and network reach.

Etihad had further increased operational efficiency, with CASK and CASK ex-fuel decreasing by 3 per cent and 4 per cent respectively. Increased efficiency is also evident in costs related to central functions, which grew much lower than capacity.

Strong top-line performance and continued improvements in unit costs drove a remarkable operating result, with EBITDA reaching Dhs4.7 billion ($1.3 billion), a 32 pe rcent year-on-year increase.Profit after tax for FY24 more than tripled year-on-year, driven by strong momentum in the passenger business, a robust recovery in Etihad’s cargo operations, and a significant reduction in net finance costs – down by almost Dhs1 billion, or 80 per cent year-on-year – reflecting continuous balance sheet deleveraging supported by strong cash generation.

Recognising Etihad’s strong improvement, credit rating agency Fitch upgraded Etihad’s rating to A+ in July 2024, citing its materially stronger standalone credit profile.