Wednesday, March 6, 2024
Today, Etihad Airways revealed its financial outcomes for the entirety of 2023, showcasing an operating profit of AED 1.4 billion (equivalent to U.S. $394 million). This achievement was propelled by a notable AED 4 billion (U.S. $1.1 billion) surge in passenger revenue compared to the previous year, coupled with a seven percent reduction in unit cost excluding fuel. These figures reflect a substantial enhancement in the profitability of the passenger business segment.
In the course of the year, the airline experienced a remarkable increase in passenger numbers, serving 14 million travelers, marking an approximate 40 percent rise from the preceding year. This growth underscores the sustained strong demand for travel across its expanding network, with an overall load factor reaching 86 percent, an improvement from 82 percent in 2022. Total revenue for the fiscal year ending on December 31, 2023, amounted to AED 20.3 billion (U.S. $5.5 billion), compared to AED 18.3 billion (U.S. $5.0 billion) in 2022.
Throughout 2023, Etihad Airways launched operations to 15 new destinations, including Lisbon, Copenhagen, Kolkata, and Osaka. Additionally, the operating fleet expanded by 14 aircraft to accommodate approximately 30 percent growth in Available Seat Kilometres (ASKs).
Efforts to fortify the airline’s financial position were also successful, evidenced by a reduction in net leverage to 2.5x net debt to EBITDA, down from 5.0x in 2022. This improvement was driven by robust cash-flow generation, prudent capital expenditure management, enhanced aircraft utilization, and the re-activation of previously parked aircraft.
Etihad’s impressive performance in 2023 follows a strategic reorganization of its business, prioritizing its core airline operations by divesting from ancillary support services and businesses, optimizing its fleet to focus on the most efficient and advanced aircraft, rationalizing its destination network, and intensifying efforts towards productivity and cost efficiency.
The airline’s passenger widebody fleet, comprising 78 percent new-generation aircraft, stands out as one of the highest ratios in the industry. This underscores Etihad’s commitment to operational efficiency and significantly contributes to its reduced emission targets.
His Excellency Mohammed Ali Al Shorafa, Chairman of Etihad Aviation Group, said: “A sincere thank you to our customers, as well as the Etihad family for giving flight to our ambition, and delivering the reliable, best-in-class service that is the hallmark of our operation. The team has continued to make our airline stronger and more efficient, while delivering extraordinary customer experiences.
“I am confident we will continue to build on this solid foundation as we grow our network, enhance our offering and connect even more people with Abu Dhabi as we support and promote the Emirate’s tourism ambitions, delivering our vision to be the airline that everyone wants to fly.”
The airline also saw an impressive rise in positive customer sentiment across 2023, buoyed by the opening of its new home, Abu Dhabi Zayed International Airport, at the end of the year.
Antonoaldo Neves, Chief Executive Officer of Etihad Airways, said: “Following our strong performance in 2023, in which we achieved AED 1.4 billion (U.S.$ 394 million) operating result and a net profit of AED 525 million (U.S.$ 143 million), our task at hand is to further strengthen our business as we continue our growth strategy and pursue further margin expansion opportunities.
“The execution capability of the Etihad team is outstanding, and it’s thanks to their relentless hard work that we have been able to achieve these results. I am confident we have the best team in the world. This accomplishment underscores our commitment to sustainable, profitable growth, robust cost control and operational efficiency.
“Looking forward, we will continue to deliver on the mandate of our shareholder, which is to be a financially viable airline delivering extraordinary customer experiences.”
Key highlights of 2023:
Sunday, April 28, 2024
Sunday, April 28, 2024
Monday, April 29, 2024
