Abu Dhabi’s Etihad posts record $232m half-year profit

Etihad Airways reported a record profit in the first half of the year, driven by robust demand for travel and cargo revenue as the Abu Dhabi-based carrier prepares for a possible initial public offering (IPO).

The national airline posted net profit after tax of $232m (Dhs851m) in the six months ended June, up 48 per cent compared to $157m a year earlier, it said in a statement Thursday.

Etihad carried 8.7 million passengers in the January-June period, a 38 per cent increase compared to the same period a year ago. Its passenger traffic in H1 is approximately three times higher than IATA’s average growth rate of 13 per cent for Middle Eastern carriers, the statement added.

“Etihad continues to play a pivotal role in advancing Abu Dhabi’s tourism and economic development. Our strategic growth and network expansion not only bolster the connectivity of our capital but also significantly contribute to the prosperity of the UAE’s economy,” said Mohammed Ali Al Shorafa, chairman of Etihad Aviation Group.

During this time, Etihad’s passenger revenue surged by 24 per cent year-on-year, underscoring strong demand for travel due to network expansion and increased flight frequencies.

The ADQ-owned airline said its half-year revenues increased by 21 per cent to a record $3.2bn (Dhs11.7bn) from $2.6bn in H1 2023, helped by growth in network capacity and passenger numbers.

The airline optimised its network during the period under review by enhancing routes and increasing frequencies to key destinations. It launched new flights to Thiruvananthapuram, Kozhikode, Boston, Jaipur, and Al Qassim, growing its global network to 81 destinations.

The Abu Dhabi-based carrier, which has undergone a massive restructuring over the past seven years, took delivery of 16 more aircraft in the first six months of 2024, expanding its fleet size to 92 aircraft, including three Airbus A321neos.

“We are bringing six A321neos into operation this year, equipped with advanced CFM LEAP 1A engines. In the next 18 months, we expect to add more than 20 new-generation aircraft to our fleet, which offer reduced emissions and up to 20 per cent more efficiency compared to previous models,” said Antonoaldo Neves, CEO of Etihad Aviation Group.

The airline registered a 10 per cent increase in cargo revenue in H1 2024 to Dhs1.9bn, supported by higher demand and the increased cargo capacity of its fleet.

Meanwhile, Etihad agreed to form a joint venture with China Eastern to develop and grow the routes between UAE and China as the Abu Dhabi flag carrier looks to boost growth. The commercial venture will be implemented in early 2025 when the two carriers secure governmental approvals.

ADQ added banks to the airline’s planned IPO in May, and the listing is expected to fetch as much as $1bn.

Read: Abu Dhabi’s Etihad, China Eastern form joint venture to boost growth