Etihad Airways reports 9-fold surge in Q1 profits as travel request increases
(MENAFN) Etihad Airways has reported a remarkable surge in profits for the first quarter of 2024, marking an almost nine-fold increase compared to the same period last year. The Abu Dhabi-based airline announced after-tax profits of Dh526 million (USD143 million), up from Dh59 million in the corresponding period of the previous year. This substantial growth has been attributed to higher passenger revenue and reduced financing costs.
The airline's total revenue for the first quarter soared approximately 21 per cent year-on-year to Dh5.7 billion, driven primarily by a notable 25 per cent increase in passenger revenue. This surge in revenue was further buoyed by a significant uptick in passenger traffic, which saw a remarkable 41 per cent year-on-year growth, totaling 4.2 million passengers. Etihad Airways expanded its route network to include new destinations such as Thiruvananthapuram, Kozhikode, and Boston, contributing to this impressive increase in passenger numbers.
Despite the substantial growth in passenger traffic, the airline's passenger load factor, a key metric measuring seat occupancy, remained steady at 86 per cent throughout the first quarter. Etihad Airways' Chief Executive Officer, Antonoaldo Neves, emphasized the significance of this profit surge, noting that the first-quarter revenues alone equaled the total net income for the entire financial year of 2023.
Neves attributed this remarkable performance to the airline's adaptability and resilience, particularly during the holy month of Ramadan, which began earlier in March this year compared to the previous year. Additionally, Etihad Airways disclosed its ambition for potential listing – a pioneering move for a major Gulf airline – as part of its growth strategy leading up to 2030. However, any decision regarding a listing would ultimately be determined by the airline's owner, Abu Dhabi holding company ADQ, as stated by Etihad Airways in March.
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