Etihad Airways witnesses 40% yearly surge in passenger traffic

Image credit: Thierry Monasse/ Getty Images

Etihad Airways said it carried 14 million passengers in 2023, a 40 per cent year-on-year increase, driven by robust demand for travel across the airline’s growing network post-pandemic.

The national carrier’s full-year passenger revenue came in at $1.1bn (Dhs4bn) while its net profit stood at $143m (Dhs525m). The group’s passenger load factor stood at 86 per cent in 2023, up from 82 per cent the previous year.

“Following our strong performance in 2023, our task at hand is to further strengthen our business as we continue our growth strategy and pursue further margin expansion opportunities,” said Antonoaldo Neves, CEO of Etihad Airways.

Etihad’s total revenue rose to Dhs20.3bn in 2023 compared to Dhs18.3bn a year earlier. It strengthened its balance sheet by reducing net leverage to 2.5x net debt to EBITDA, from 5.0x in 2022, driven by strong cash-flow generation, controlled capital expenditure and the re-activation of previously parked aircraft.

The airline expanded its global network to 72 destinations in 2023. It added 15 new destinations to its global network last year including Lisbon, Copenhagen, Kolkata and Osaka.

Furthermore, Etihad took delivery of 14 new aircraft in 2023. Its widebody fleet comprised 78 per cent new generation aircraft, as part of its broader strategy to advance operational efficiency and contribute to its emission targets.

Etihad’s growth strategy

Meanwhile, Etihad is gearing up to achieve sustainable and profitable growth, thanks to strong support from stakeholders and a robust strategic plan for the future.

The national carrier aims to more than double its passenger capacity to 33 million and its fleet size to over 160 aircraft by the end of the decade.

Etihad is owned by ADQ, and the Abu Dhabi wealth fund is reportedly considering listing the airline as soon as this year, potentially making it the first of the GCC region’s major carriers to go public.

“As the management, we have the obligation and whenever is the proper time to do an IPO, we are going to be ready,” Neves said during a media roundtable in Abu Dhabi while highlighting that any public offering would be a decision for ADQ, not the airline.

Earlier this month, Bloomberg reported that deliberations were ongoing and details such as the size and timing of any listing are still undecided.

Etihad’s CEO said the airline was increasing efficiency to drive profits, including scrapping unprofitable routes and returning grounded aircraft to service.

Read: flydubai expands global network to 122 destinations in 2023