‘Impressive Growth and Profitability for Etihad in 2023’

Etihad Airways, the flag carrier of the United Arab Emirates, has announced impressive financial results for the fiscal year 2023, with a robust operating profit of AED 1.4 billion (approximately 4 million). This achievement is credited to a significant increase in passenger revenue, which saw a rise of AED 4 billion (about .1 billion) year-on-year.

The airline has also made significant progress in enhancing its operational efficiency, with a 7% reduction in unit costs excluding fuel, leading to improved profitability in the passenger business segment. In 2023, Etihad Airways saw a substantial growth in passenger numbers, serving 14 million travelers, which marks a nearly 40% increase from the previous year. This growth highlights the continued demand for air travel and the success of the airline’s expanding route network, resulting in an 86% load factor, up from 82% in 2022.

Total revenue for the year reached an impressive AED 20.3 billion (roughly .5 billion), up from AED 18.3 billion (.0 billion) in the previous year. The airline expanded its operations by introducing 15 new destinations, including Lisbon, Copenhagen, Kolkata, and Osaka, along with adding 14 new aircraft to its fleet to support a 30% increase in Available Seat Kilometers (ASKs).

In addition to financial success, Etihad Airways also strengthened its balance sheet by significantly reducing net leverage to 2.5x net debt to EBITDA from 5.0x in 2022. This improvement was achieved through strong cash-flow generation, controlled capital expenditure, enhanced aircraft utilization, and the reactivation of previously parked aircraft. The airline’s strategic restructuring, focusing on core services and efficiency improvements, played a crucial role in its success, with 78% of the passenger widebody fleet now consisting of new generation aircraft, demonstrating Etihad’s commitment to operational efficiency and sustainability.