Etihad Airways 'cautiously optimistic' on 2022 outlook, chief executive says

Etihad Airways is “cautiously optimistic” about the travel outlook for 2022 despite strong passenger demand and steady cargo rates as the aviation industry recovers from the coronavirus-induced slowdown.

The Abu Dhabi-based airline's earnings before interest, taxes, depreciation, and amortisation stood at $272 million in the first quarter, with yields on passenger fares “reasonably good”, Tony Douglas, chief executive of Etihad Aviation Group, said at the Arabian Travel Market fair in Dubai on Tuesday.

Premium cabin load factors are currently higher than they were before the pandemic, he said. The load factor is a measure of how well an airline is filling available seats.

“We are very cautiously optimistic because all the cargo rates maintain themselves,” Mr Douglas said. “There is a lot of demand out there, which is the second reason I am cautiously optimistic as we go through the year. It is a big part of the recovery that we all need.”

With Covid-related travel restrictions easing worldwide, pent-up air travel demand is finally being unleashed, according to the International Air Transport Association (Iata).

Total traffic in March 2022 — measured in revenue passenger kilometres, or RPKs — was up 76 per cent, compared with March 2021, Iata said in its monthly report.

Although that was lower than the 115.9 per cent rise in annual demand in February, “volumes in March were the closest to 2019 pre-pandemic levels, at 41 per cent below”, it said.

“We are not getting carried away; quite the opposite,” Mr Douglas said.

“It is a sustainable work in progress but what we have seen is the market has come back like a fire hydrant. Yields are still reasonably good … we have been, for the first four months of the year, almost back to 2019 levels.”

Etihad's premium cabin load factors have now exceeded pre-pandemic levels, he said.

Etihad Airways operates one of the world's youngest and most fuel-efficient fleets. Photo: Etihad

Etihad's Airbus A350 and signature Greenliner B787 aicraft at Dubai Airshow. Photo: Etihad

An Etihad B787 is seen taking off, one of the 67 operating aircraft in Etihad's fleet. Photo: Etihad

A B787 takes off at Abu Dhabi Airport - Etihad operates 39 such Dreamliner aircraft. Photo: Etihad

Etihad A350 with a B777 in the background - the average age of Etihad's fleet is 5.7 years. Photo: Etihad

An Etihad Airways state-of-the-art Airbus A350. Photo: Etihad

Etihad Airlines CEO Tony Douglas. Photo: Etihad

“People are quite keen to trade up to more space,” said Mr Douglas. “We have seen a significant upturn in premium.”

About 45 per cent of Etihad's Business and First class cabins were filled with leisure travellers before the pandemic but that percentage has now increased.

Etihad's joint venture with Sharjah-based budget airline Air Arabia Abu Dhabi has been profitable in its first year of operation, he said. It competes with Hungarian Wizz Air's joint venture with local holding company ADQ.

There is room for a third and fourth airline to be based out of the UAE capital, as markets such as Africa are still underserved and represent an opportunity to expand further, Mr Douglas said.

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Timeline

1947
Ferrari’s road-car company is formed and its first badged car, the 125 S, rolls off the assembly line

1962
250 GTO is unveiled

1969
Fiat becomes a Ferrari shareholder, acquiring 50 per cent of the company

1972
The Fiorano circuit, Ferrari’s racetrack for development and testing, opens

1976
First automatic Ferrari, the 400 Automatic, is made

1987
F40 launched

1988
Enzo Ferrari dies; Fiat expands its stake in the company to 90 per cent

2002
The Enzo model is announced

2010
Ferrari World opens in Abu Dhabi

2011
First four-wheel drive Ferrari, the FF, is unveiled

2013
LaFerrari, the first Ferrari hybrid, arrives

2014
Fiat Chrysler announces the split of Ferrari from the parent company

2015
Ferrari launches on Wall Street

2017
812 Superfast unveiled; Ferrari celebrates its 70th anniversary

Overall head-to-head

Federer 6-1 Cilic

Head-to-head at Wimbledon

Federer 1-0 Cilic

Grand Slams titles

Federer 18-1 Cilic

Best Wimbledon performance

Federer: Winner (2003, 2004, 2005, 2006, 2007, 2009, 2012)
Cilic: Final (2017*)

While you're here

Malaysia crowns Pahang state's Sultan Abdullah as 16th king

Sheikh Mohamed receives Malaysian king in Abu Dhabi

Sheikh Mohamed and the King of Malaysia in 1979

Results

1.30pm Handicap (PA) Dh50,000 (Dirt) 1,400m

Winner Al Suhooj, Saif Al Balushi (jockey), Khalifa Al Neyadi (trainer)

2pm Handicap (TB) 68,000 (D) 1,950m

Winner Miracle Maker, Xavier Ziani, Salem bin Ghadayer

2.30pm Maiden (TB) Dh60,000 (D) 1,600m

Winner Mazagran, Tadhg O’Shea, Satish Seemar

3pm Handicap (TB) Dh84,000 (D) 1,800m

Winner Tailor’s Row, Royston Ffrench, Salem bin Ghadayer

3.30pm Handicap (TB) Dh76,000 (D) 1,400m

Winner Alla Mahlak, Adrie de Vries, Rashed Bouresly

4pm Maiden (TB) Dh60,000 (D) 1,200m

Winner Hurry Up, Royston Ffrench, Salem bin Ghadayer

4.30pm Handicap (TB) Dh68,000 (D) 1,200m

Our legal advisor

Ahmad El Sayed is Senior Associate at Charles Russell Speechlys, a law firm headquartered in London with offices in the UK, Europe, the Middle East and Hong Kong.

Experience: Commercial litigator who has assisted clients with overseas judgments before UAE courts. His specialties are cases related to banking, real estate, shareholder disputes, company liquidations and criminal matters as well as employment related litigation.

Education: Sagesse University, Beirut, Lebanon, in 2005.