Etihad Airways today announced its H1 2024 results, recording a 48 per cent increase in profit after tax achieving AED 851 million (£183 million), a significant increase from AED 575 million (£123 million) in H1 2023, highlighting the airline’s continued focus on growth coupled with optimising operational efficiencies.
Total revenue increased 21 per cent to AED 11.7 billion (£2.5 billion), from AED 9.6 billion (£2.1 billion) 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.
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.
Etihad 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.
Operational efficiencies continued to improve with decreasing unit cost from the same period last year, with CASK (cost per seat kilometre) and CASK ex-fuel reduced by 5 per cent and 8 per cent, respectively. At the same time, overall passenger experience improved, continuing the trend of increased customer satisfaction since consolidating operations in the new terminal.
Antonoaldo Neves, Chief Executive Officer of Etihad Aviation Group, said: “We are pleased to report a strong first half of the 2024 financial year, with profit after tax 48 per cent higher than the net result reported in the same period of 2023. This reflects 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.
“I extend heartfelt gratitude to our people, whose hard work and dedication in the air and on the ground, working together for a purpose, have been instrumental in achieving these results.”
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.”
Etihad continued to enhance its global network by adding new destinations and increasing capacity, as well as expanding partnerships. During this period, Etihad 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.
In July 2024, credit rating agency Fitch upgraded Etihad’s rating to an A+ status, citing its materially stronger standalone credit profile.
Key H1 2024 highlights at a glance:
Total revenue increased by 21 per cent year-on-year mainly due to passenger revenue, which saw an increase of almost AED 2 billion (+24 per cent year-on-year). This performance reflects the strong demand, the strategic network expansion, and the increased frequencies in key markets.
Cargo revenue in H1 2024 increased by approximately 10 per cent to AED 1.9 billion compared to the same period last year, primarily driven by increased demand and increased belly capacity of our fleet.
Unit costs continue to decrease with CASK and CASK ex-fuel reduced by 5 per cent and 8 per cent, respectively.
Profit after tax in H1 2024 is 48 per cent higher compared to the net result reported in H1 2023. This is due to strong performance in both passenger and cargo revenues.
Capacity growth: both Available Seat Kilometres (ASK) and passengers confirmed strong performance during the first half of the year, resulting in year-to-date of 44.4 billion ASK and 8.7 million passengers (an increase year-on-year of 33 per cent and 38 per cent, respectively).
Fleet expansion: the operating fleet continued to grow in Q2 2024 with an additional three aircraft in the first six months of 2024. The growth of the fleet is even more significant if compared with H1 2023 (+16 aircraft). The three additional aircrafts in Q2 2024 are A321neos, a new type introduced into Etihad’s fleet, representing an important step in the company’s growth plans.
