Etihad Airways Posts Record Q1 Profit Of AED526 Million In 2024
Etihad Airways has unveiled its financial results for the first quarter of 2024, showcasing a notable profit after tax of AED526 million (US$143 million). This marks a substantial improvement from the first quarter of 2023 and sets a positive tone for the airline's financial performance in 2024. The airline's total revenue saw an increase of AED987 million (US$269 million), climbing from AED 4,752 million (US$1,294 million) in Q1 2023 to AED 5,739 million (US$ 1,563 million) in Q1 2024. This growth is attributed to an expansion in network capacity and a surge in passenger numbers, with the airline transporting 4.2 million passengers over the quarter, reflecting a 41 per cent increase year-on-year.
The average passenger load factor remained steady at 86 per cent, mirroring the figures from the same period last year. Meanwhile, revenue from cargo and other sources has remained stable. Etihad Airways has also made strides in enhancing operational efficiency, with unit costs witnessing a decrease from the corresponding quarter last year. Specifically, CASK and CASK ex-fuel reduced by 9 per cent and 11 per cent, respectively.
Antonoaldo Neves, Chief Executive Officer of Etihad Airways, expressed satisfaction with the airline's performance, highlighting that the first quarter earnings for 2024 equaled the total net income for the entire financial year of 2023. Neves emphasized the airline's resilience, customer service focus, growth orientation, and commitment to efficiency as key factors contributing to this achievement. He also noted the significance of achieving such profit increase despite the holy month of Ramadan commencing in early March this year, showcasing the adaptability of Etihad's business model.
Etihad Airways is not resting on its laurels; it has plans to further expand its network and enhance its offerings. The airline has already introduced new flights to Thiruvananthapuram, Kozhikode, and Boston and announced additional routes to Antalya and Jaipur. This expansion strategy has resulted in a 34 per cent increase in Etihad's total weekly flights for the upcoming peak summer period, growing from 642 last year to 858 in 2024.
The airline's efforts have also significantly bolstered Abu Dhabi's tourism sector, with a remarkable 43 per cent increase in inbound point-to-point traffic compared to the first quarter of 2023. Neves extended his gratitude towards all employees whose dedication and hard work have been instrumental in achieving these impressive results.
As Etihad Airways continues to navigate through the challenges and opportunities of the aviation industry, its Q1 2024 results underscore its strategic focus on growth, efficiency, and customer service. The airline's proactive measures to expand its network and enhance operational efficiency are pivotal in maintaining its competitive edge while supporting Abu Dhabi's broader tourism ambitions.
With inputs from WAM
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