Etihad Airways recorded an almost ninefold increase in first-quarter profits, as the airline continues to expand its route network and carry more passengers amid soaring demand for air travel.
The Abu Dhabi airline posted after-tax profits of Dh526 million ($143 million) for the first three months of 2024, up from Dh59 million in the same period a year ago. It cited higher passenger revenue and lower financing costs for the increase.
Total revenue rose about 21 per cent year-on-year to Dh5.7 billion in the first quarter, driven mainly by a 25 per cent increase in passenger revenue.
Passenger traffic grew 41 per cent year-on-year to 4.2 million as Etihad Airways expanded its network to destinations including Thiruvananthapuram, Kozhikode and Boston.
Passenger load factor – a measure of how well an airline fills available seats – remained unchanged at 86 per cent during the three months.
First-quarter revenues are “equivalent to our total net income for the entire financial year 2023 as we continue our margin expansion journey”, said Etihad Airways' chief executive Antonoaldo Neves.
“This significant profit increase was achieved even with the holy month of Ramadan starting in early March this year, compared to late March last year, demonstrating the adaptability of our business.”
The airline usually announces half-yearly or annual operating gross. The quarterly earnings announcement comes after Etihad in March said it was preparing for a potential listing – a first for a major Gulf airline – as it pursues an ambitious growth strategy between now and 2030.
However, any decision about a possible listing would be made by the airline's owner, Abu Dhabi holding company ADQ, Etihad said at the time.
The airline is making “a lot of progress” in its management and transparency, which includes releasing quarterly earnings, Mr Neves told The National on Thursday.
“The shareholder mandate is very clear to us: Improve the service and have a sustainable company that is profitable,” he said.
“The mandate is to deliver an extraordinary customer experience and have a company that is self-funded and viable financially and economically speaking.”
A strong network, operational efficiencies, cost efficiencies and an “agile” team will enable the airline to deliver sustainable results, he said.
Etihad Airways said its cost per available seat kilometre (CASK) and CASK excluding fuel costs dropped by 9 per cent and 11 per cent in the first quarter.
Investor demand
Mr Neves, who led Brazilian airline Azul through an initial public offering in 2017, said that investors typically look into an airline's margin expansion for value creation.
“When investors look for an asset, they are concerned about future profitability and if you have a strategy that provides you with differentiation and you have a proven track record in delivering results … then that helps in the IPO story as well,” he said.
“When I did the Azul IPO, Azul had just become profitable. So the investors were buying the margin expansion story. Because if you buy only into the profitability, there's no value creation left.”
The Etihad boss said that any future IPO decision is up to the airline's shareholders and that his focus is devoted to margin expansion, growth and enhancing customer service.
The outlook
Looking ahead into the rest of the year, the outlook for summer travel is bright with “very strong” forward bookings for travel in June, Mr Neves said.
In March, Etihad Airways said it expects to exceed last year's annual profit of Dh525 million, in 2024.
Etihad’s operating fleet grew to 89 aircraft in the first quarter, from 75 in the previous year, including the addition of three new Boeing 787s in February this year. The airline's capacity in terms of available seat kilometres (ASKs) increased by 35 per cent year-on-year.
Killing of Qassem Suleimani
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
More on Quran memorisation:
Russia's Muslim Heartlands
Dominic Rubin, Oxford
Mohammed bin Zayed Majlis
Tuesday's fixtures
Kyrgyzstan v Qatar, 5.45pm
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
More from Neighbourhood Watch:
Killing of Qassem Suleimani
The Bio
Favourite place in UAE: Al Rams pearling village
What one book should everyone read: Any book written before electricity was invented. When a writer willingly worked under candlelight, you know he/she had a real passion for their craft
Your favourite type of pearl: All of them. No pearl looks the same and each carries its own unique characteristics, like humans
Best time to swim in the sea: When there is enough light to see beneath the surface
Killing of Qassem Suleimani
The years Ramadan fell in May
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
More from Neighbourhood Watch:
Mohammed bin Zayed Majlis
SPEC%20SHEET%3A%20APPLE%20IPAD%20(2022)
%3Cp%3E%3Cstrong%3EDisplay%3A%3C%2Fstrong%3E%2010.9-inch%20Liquid%20Retina%20IPS%20LCD%2C%202%2C360%20x%201%2C640%2C%20264ppi%2C%20wide%20colour%2C%20True%20Tone%2C%20Apple%20Pencil%201%20support%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EChip%3A%3C%2Fstrong%3E%20Apple%20A14%20Bionic%2C%206-core%20CPU%2C%204-core%20GPU%2C%2016-core%20Neural%20Engine%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStorage%3A%3C%2Fstrong%3E%2064GB%2F256GB%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPlatform%3A%3C%2Fstrong%3E%20iPadOS%2016%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMain%20camera%3A%3C%2Fstrong%3E%2012-megapixel%20wide%2C%20f%2F1.8%2C%205x%20digital%2C%20Smart%20HDR%203%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EVideo%3A%3C%2Fstrong%3E%204K%20%40%2024%2F25%2F30%2F60fps%2C%20full%20HD%20%40%2025%2F30%2F60fps%2C%20slo-mo%20%40%20120%2F240fps%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFront%20camera%3A%3C%2Fstrong%3E%2012MP%20ultra-wide%2C%20f%2F2.4%2C%202x%2C%20Smart%20HDR%203%2C%20Centre%20Stage%3B%20full%20HD%20%40%2025%2F30%2F60fps%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EAudio%3A%3C%2Fstrong%3E%20Stereo%20speakers%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EBiometrics%3A%3C%2Fstrong%3E%20Touch%20ID%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EI%2FO%3A%3C%2Fstrong%3E%20USB-C%2C%20smart%20connector%20(for%20folio%2Fkeyboard)%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EBattery%3A%3C%2Fstrong%3E%20Up%20to%2010%20hours%20on%20Wi-Fi%3B%20up%20to%209%20hours%20on%20cellular%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFinish%3A%3C%2Fstrong%3E%20Blue%2C%20pink%2C%20silver%2C%20yellow%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EIn%20the%20box%3A%3C%2Fstrong%3E%20iPad%2C%20USB-C-to-USB-C%20cable%2C%2020W%20power%20adapter%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20Wi-Fi%20%E2%80%94%20Dh1%2C849%20(64GB)%20%2F%20Dh2%2C449%20(256GB)%3B%20cellular%20%E2%80%94%20Dh2%2C449%20(64GB)%20%2F%20Dh3%2C049%20(256GB)%3C%2Fp%3E%0A
KILLING OF QASSEM SULEIMANI
MATCH INFO
Uefa Champions League last-16, second leg:
Real Madrid 1 (Asensio 70'), Ajax 4 (Ziyech 7', Neres 18', Tadic 62', Schone 72')
Ajax win 5-3 on aggregate
More from Neighbourhood Watch:
MATCH INFO
Champions League quarter-final, first leg
Tottenham Hotspur v Manchester City, Tuesday, 11pm (UAE)
Matches can be watched on BeIN Sports
Zayed Sustainability Prize
More on Quran memorisation:
The five pillars of Islam
Killing of Qassem Suleimani
The biog
Name: Ayisha Abdulrahman Gareb
Age: 57
From: Kalba
Occupation: Mukrema, though she washes bodies without charge
Favourite things to do: Visiting patients at the hospital and give them the support they need.
Role model: Sheikha Fatima bint Mubarak, Chairwoman of the General Women's Union, Supreme Chairwoman of the Family Development Foundation and President of the Supreme Council for Motherhood and Childhood.
Zayed Sustainability Prize
WORLD CUP SEMI-FINALS
England v New Zealand
(Saturday, 12pm UAE)
Wales v South Africa
(Sunday, 12pm, UAE)
More from Neighbourhood Watch:
