Etihad’s net profits reach $143M in 2023 as passenger revenue drives growth 

Etihad Airways
Etihad Airways

Etihad Airways saw its net profits in 2023 increase to AED 525 million ($143 million) from AED 92 million ($25 million) in 2022 when the carrier was still struggling to recover from the COVID-19 pandemic. 

Passenger revenues and new destinations helped drive net profit growth during 2023, along with a drop in fuel costs. 

Details regarding the flag carrier’s performance were published on March 6, 2024, as it becomes increasingly likely that Etihad is preparing for an Initial Public Offering

The Abu Dhabi-based airlines’ CEO, Antonoaldo Neves, told CNBC on March 5, 2024, that he is “working to be ready, whenever it’s the time,” when asked if Etihad is going public. 

Highlights from the 2023 financial results included recording AED 1.4 billion ($394 million) operating result, driven by AED 4 billion ($1.1 billion) year-on-year growth in passenger revenue, while fuel decreased by 7% year-on-year. 

Passenger numbers were up 40% in comparison to the previous year with 14 million passengers choosing to fly with Etihad in 2023, while the load factor rose from 82% in 2022 to 86% last year.  

Total revenue reached AED 20.3 billion ($5.5 billion) at the end of 2023, compared to AED 18.3 billion ($5 billion) in 2022. 

An increase in passenger numbers was helped by Etihad launching 15 new destinations, including Lisbon, Copenhagen, Kolkata, and Osaka, and adding 14 aircraft, including four A380s, to operations.  

In a statement Etihad said the strong growth was due to a “successful reorganization of its business, sharpening its focus on the core airline offering by divesting from ancillary support services and businesses; restructuring the fleet to focus on the most efficient and advanced aircraft; streamlining and rationalizing its destination network; and increasing focus on productivity and cost savings”. 

Other successes in 2023 included transferring Abu Dhabi hub operations to Zayed International Airport (AUH) and hiring more than 2,300 new employees, primarily as pilots and cabin crew members.  

“Following our strong performance in 2023, in which we achieved AED 1.4 billion ($394 million) operating result and a net profit of AED 525 million (#143 million), our task at hand is to further strengthen our business as we continue our growth strategy and pursue further margin expansion opportunities,” Neves said.  

He added: “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.” 

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