Etihad Airways Announces Highest-Ever Profit Of AED 1.7 Billion (US$ 476 million) In 2024

Etihad's Profit Soars to AED 1.7 Billion

Etihad Airways has unveiled its results for 2024, showcasing robust performance across all significant metrics. The airline reported an after-tax profit of AED 1.7 billion (U.S.$ 476 million), fuelled by passenger revenue of AED 20.8 billion (U.S.$ 5.7 billion) and cargo revenue of AED 4.2 billion (U.S.$ 1.1 billion), coupled with notable enhancements in operational efficiency.

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

Total revenue experienced a year-on-year rise of 25 percent, reaching AED 25.3 billion (U.S.$ 6.9 billion). Strong performances in both the passenger and cargo sectors propelled this expansion. Passenger revenue surged by AED 4.2 billion (U.S.$ 1.1 billion), marking a 25 percent increase from 2023, attributed to an improved network and heightened capacity. Cargo revenue also climbed by 24 percent compared to the previous year, driven by increased capacity and volume (with a 12 percent rise in cargo leg tonnes carried) and enhanced yields during the latter half of the year.

In 2024, the airline increased its operations to over 1,700 weekly flights and raised frequencies on 25 routes over the last two years. Additionally, it introduced more than 20 new destinations, including Boston, Jaipur, Bali, and Nairobi, and seasonal hotspots like Antalya, Nice, and Santorini, with over 10 of these cities scheduled to begin operations in 2025. The fleet continued to grow with the addition of 12 aircraft, including a new fleet type featuring six A320 NEOs and the return to service of its fifth A380. Etihad now boasts the region's youngest and most fuel-efficient fleet, which aligns with its ESG strategy to reduce carbon emissions while enhancing service offerings.

The airline focused on enhancing customer experience, resulting in an increase in NPS, which indicates improved operational and service satisfaction. In 2024, they approved a groundbreaking AED 3 billion retrofit initiative— the largest in their history— which aims to significantly enhance cabin comfort, inflight experiences, and NPS once implemented. Etihad also launched a specialized premium call centre to provide quicker and more personalized service for premium customers, utilizing AI to improve efficiency. Over 200 upgrades were implemented on the website and app to enhance guest experiences further. Moreover, the airline’s loyalty program, Etihad Guest, celebrated reaching a milestone of 10 million members.

Etihad has received industry accolades, including recognition from organizations like the World Travel Awards and the Business Traveller Awards. These awards include Best Cabin Crew, Best Customer Experience, Best Economy Class, and Best First Class Lounge. Additionally, in 2024, Airlineratings.com recognized it as the Environmental Airline of the Year, marking its third consecutive year receiving this honour.

Etihad’s workforce expanded to over 11,000 employees, including over 2,000 recruits and 1,500 promotions. The UAE National Talent initiatives advanced, graduating over 70 Emirati cadet pilots and receiving more than 3,000 applications for the latest cadet program. UAE Nationals constitute 20 percent of the workforce, highlighting Etihad’s commitment to the UAE talent strategy and its contribution to nurturing future aviation experts.

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

Revenue growth and ongoing reductions in unit costs led to an operating outcome. EBITDA reached AED 4.7 billion (U.S.$1.3 billion), a 32 percent increase from the previous year.

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 AED 1 billion, or 80 per cent year-on-year – reflecting continuous balance sheet deleveraging supported by strong cash generation.

In July 2024, credit rating agency Fitch upgraded Etihad’s rating to A+, citing its stronger standalone credit profile as recognition of its substantial improvement.

Key 2024 highlights at a glance:

• Total revenue significantly increased, reaching AED 25.3 billion (U.S.$6.9 billion), a 25 percent increase from the previous year.
• Passenger revenue grew by almost AED 4.2 billion (U.S.$1.1 billion), reflecting an enhanced network, increased capacity, and increased volumes.
• Cargo revenue rose by 24 per cent compared to last year, fuelled by increased capacity (an increase of 12 per cent year-on-year in cargo leg tonnes carried), alongside improved yields in the year's second half.
• Achieved a significant NPS increase driven by service improvements and recognised with multiple awards, including Best Cabin Crew, Best Customer Experience, Best Economy Class, and Environmental Airline of the Year for the third consecutive year.
• The substantial revenue and operating efficiency results led to a remarkable improvement in operating performance. EBITDA increased by 32 percent yearly, reaching AED 4.7 billion (U.S.$1.3 billion).
• Strong cash generation throughout the year confirmed operating performance. Cash flow from operations was AED 5.8 billion (U.S.$1.6 billion), almost doubling that of FY23.
• Net finance costs decreased by almost AED 1 billion, or 80 per cent year-on-year, driven by continuous balance sheet deleveraging (net leverage from 2.5x in FY23 to 1.4x in FY24).
• Improved efficiency led to decreases in the per Available Seat Kilometre (CASK) and CASK excl. fuel derby 3 percent and 4 percent actively., year over year
• Profit after tax for FY24 is more than three times the net income reported in FY23.
• Capacity expansion with ASK increased by 28 percent, mainly due to 12 additional aircraft and higher aircraft utilisation. As of December 2024, the 97 aircraft operating fleet includes six new A320 NEOs, a new fleet type introduced in May 2024.
• Passenger numbers surge with remarkable growth of 32 per cent yearly, reaching 18.5 million passengers.
• Passenger load factor stood at 87 per cent, up from 86 per cent in 2023.
• In December 2024, Etihad’s network expanded to 80 destinations, showcasing its commitment to increasing accessibility and connectivity for its Abu Dhabi hub and customers while exploring new markets and opportunities for growth.

Note: (1) Including seasonal and Cargo routes operated as of the closing month of the period. (2) As of the closing month of the period. Including 5 freighters.