Etihad Airways, the national airline of the UAE, reported a significant improvement in its financial performance in the first quarter of 2024. The airline recorded a profit after tax of Dh526 million, representing a 791 per cent increase compared to the same period last year. Total revenue also saw a substantial increase of Dh987 million, reaching Dh5.739 million, driven by an increase in network capacity and passenger numbers.
During the first quarter of 2024, Etihad Airways carried 4.2 million passengers, a 41 per cent increase year-on-year. The average passenger load factor remained at 86 per cent, showcasing the airline’s consistent performance in terms of passenger occupancy. Revenue from cargo and other sources remained stable during the period, contributing to the overall positive financial results.
The airline’s operational efficiency improved during the quarter, with a decrease in unit cost compared to the same period last year. Cost per available seat kilometer (CASK) and CASK excluding fuel both recorded a reduction of 9 per cent and 11 per cent, respectively. These cost-saving measures have contributed to the airline’s improved financial performance and margin expansion.
Etihad Airways’ Chief Executive Officer, Antonoaldo Neves, attributed the strong quarterly earnings to the airline’s margin expansion journey and adaptability in the face of challenges like the early start of Ramadan in March. The airline’s strategic plans focus on network expansion and service enhancement to attract more passengers through Abu Dhabi. Neves expressed gratitude to the employees for their dedication and contributions to the positive results.
To optimize its network, Etihad Airways introduced new flights to destinations like Thiruvananthapuram, Kozhikode, and Boston, while also announcing additional routes to Antalya and Jaipur. These new routes and increased flight frequencies have led to a 34 per cent growth in the airline’s total weekly flights for the upcoming peak summer period, supporting Abu Dhabi’s tourism sector with a 43 per cent increase in inbound traffic.
Operating from its new terminal at Zayed International Airport, Etihad Airways witnessed improvements in customer satisfaction driven by enhanced efficiencies across all passenger touchpoints. The airline’s operating fleet expanded from 75 to 89 aircraft during the first quarter of 2024, including the addition of three new 787s in February. These fleet enhancements aim to support the airline’s growth and service quality for passengers.
In conclusion, Etihad Airways’ strong financial performance in the first quarter of 2024 reflects its commitment to operational efficiency, network expansion, and customer satisfaction. The airline’s focus on cost-saving measures, new flight routes, and fleet expansion has contributed to its significant profit increase and growth in passenger numbers. With strategic plans in place for further development, Etihad Airways continues to play a vital role in connecting passengers through Abu Dhabi and supporting the UAE’s aviation industry.
