Abu Dhabi’s Etihad posts 66% rise in nine-month profit

Etihad Airways reported a 66 per cent surge in profit in the first nine months of the year, driven by double-digit passenger traffic growth and robust cargo demand as the Abu Dhabi-based carrier prepares for a possible initial public offering (IPO).

The national airline, which has undergone massive restructuring over the past seven years, including overhauling its management, reported a profit after tax of $368m (Dhs1.4bn), up from $222m a year earlier.

Etihad carried almost 14 million passengers over the first nine months of the year, a 35 per cent increase year-on-year, with available seat kilometres (ASK) reaching 68.2 billion, an increase of 31 per cent year-on-year (YoY), the carrier said in a statement.

Its passenger revenues jumped by 21 per cent to reach $4.1bn as the airline continues to add flights and new routes to enhance its connectivity further.

“Our rolling 12-month passenger count has reached nearly 18 million, marking an increase of nearly 80 per cent compared to 2022 and underscoring the pace of our growth over the past two years. We’ve also extended our network to 83 destinations as of September, up from 72 a year ago, with further growth expected by year-end,” said Antonoaldo Neves, CEO of Etihad Aviation Group.

Etihad said its nine-month revenues increased by 21 per cent to a record $5bn from $4.1bn for the corresponding period a year earlier, helped by the airline’s network expansion strategy, alongside significant growth in the cargo business. Cargo revenue rose surged to $808m, a 21 per cent increase from the previous year.

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.

Etihad also signed a $408.4m (Dhs1.5bn) agreement with Mubadala’s Sanad in October for the acquisition of 16 aircraft engines, a deal that is expected to support the carrier’s continued expansion while strengthening the emirate’s aviation ecosystem.

The ADQ-owned airline is exploring the possibility of listing on the Abu Dhabi Securities Exchange as early as 2025 in what is potentially the first privatisation of a major legacy airline in the GCC region.

Read: Abu Dhabi’s Etihad Airways buys 16 aircraft engines for Dhs1.5bn