Etihad Airways posts record 2024 profit on strong travel demand

Abu Dhabi airline’s full-year profit reached $467 million while total revenue grew by 25 per cent annually

Etihad Airways' check-in counters at Abu Dhabi's Zayed International Airport. The airline launched more than 20 new destinations last year. Photo: Etihad Airways

Etihad Airways posted a record after-tax profit of Dh1.75 billion ($476 million) last year, more than three times that of 2023, driven by strong passenger and cargo revenue, as the Abu Dhabi airline continues to expand its route network.

Total revenue increased by 25 per cent annually to Dh25.3 billion ($6.9 billion), driven mainly by a 25 per cent surge in passenger revenue, the airline said on Wednesday.

Passenger traffic grew by 32 per cent annually to 18.5 million, as Etihad Airways launched more than 20 more destinations during the year, including Boston, Jaipur, Bali and Nairobi. Flights to more than 10 of these cities are set to begin operations this year.

Passenger load factor reached 87 per cent, while available seat kilometres (ASK) increased 28 per cent year-on-year.

The airline’s profit growth was also supported by a 24 per cent annual increase in its cargo revenue to Dh4.16 billion, fuelled by increased capacity and volume.

“Looking ahead, I am confident we will continue to be a financially strong airline,” Antonoaldo Neves, chief executive of Etihad Airways, said.

Etihad said it “strengthened profitability and expanded margins through an optimised fleet and network, and improved efficiency”. Earnings before interest, taxes, depreciation and amortisation reached Dh4.7 billion last year, a 32 per cent year-on-year increase.

Etihad Airways makes its inaugural flight to Bali

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Global air passenger demand reached a record high in 2024, with full-year traffic increasing by 10.4 per cent annually, according to the International Air Transport Association (Iata). Middle East airlines reported a 9.4 per cent traffic jump during the year.

“The year 2024 made it absolutely clear that people want to travel. On average, 83.5 per cent of all seats on offer were filled – a record high, partially attributable to the supply chain constraints that limited capacity growth,” said Willie Walsh, Iata’s director general, in January.

He added that there is every indication that demand for travel will continue to grow this year, “albeit at a moderated pace of 8 per cent”.

Fleet and route expansion

Etihad added 12 aircraft to its fleet last year, taking its total fleet size to 97 aircraft as of December, including six new Airbus A320 NEOs, and the return to service of its fifth A380. The airline, which plans to triple passenger numbers to 33 million by the end of the decade, expanded its operations to more than 1,700 weekly flights last year.

Etihad said it now operates “the youngest and most fuel-efficient fleet in the region, supporting its ESG [environmental social and governance] strategy to minimise carbon emissions”.

However, as Etihad forges ahead with plans to double its fleet size by the end of the decade and add about eight to 10 destinations every year, the airline is “done in terms of its aircraft needs” until 2030, Mr Neves told The National in November.

“We don't need incremental planes until 2030 because we spent a lot of time last year trying to make sure we get those planes. We have left inside our fleet plan some flexibility if there's a need to cut capacity, because we have some planes that will come off lease, but we're operating on the other side of that,” he said at the time.

With an aim to capitalise on strong air travel demand amid a shortage of new jets, Etihad Airways plans to invest nearly $1 billion to retrofit its older Boeing 777 and 787 Dreamliner aircraft, with retrofitting the older Boeing wide-bodies expected to start in 2026, it said in November. The investment in the retrofit programme is on top of plans to plough $7 billion by 2030 into new aircraft and other capital expenditure, Mr Neves said at the time.

Once under way, the retrofit programme is expected to “further elevate cabin comfort, in-flight experience, and net promoter score”, Etihad said on Wednesday.

Etihad's expansion has also supported Zayed International Airport’s growth. The Abu Dhabi airport handled 28.8 million passengers last year, up from 22.4 million in 2023.

Meanwhile, the airline hired more than 2,000 employees last year, with its workforce totalling over 11,000.