Buoyed by the launch of new routes and positive passenger growth, Etihad has reported an operating profit of USD 394 million in 2023.

With a 40 pc year-on-year growth in number of passengers that rose from 10 million in 2022 to 14 million in 2023, Abu Dhabi-based Etihad Airways has announced an operating profit of AED 1.4 billion (USD 394 million) in the year 2023.

According to a press statement, the airline has recorded AED 4 billion (USD 1.1 billion) year-on-year growth in passenger revenue, while decreasing unit cost excluding fuel by 7 pc. This marks a significant improvement in passenger business profitability.

The airline says that it saw an overall load factor of 86 pc, compared to 82 per cent in 2022. Total revenue reached USD 5.5 billion in the year ended 31 December 2023, compared to USD 5.0 billion in 2022.

Etihad says that through 2023, the airline has launched 15 new destinations, including Lisbon, Copenhagen, Kolkata and Osaka, which grew its operating fleet by 14 aircraft, to support 30 pc growth in Available Seat Kilometres (ASKs).

“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,” says Mohammed Ali Al Shorafa, Chairman of Etihad Aviation Group.

“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,” Shorafa adds.

The airline also successfully strengthened its balance sheet by reducing net leverage to 2.5x net debt to Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA), from 5.0x in 2022. Etihad says its passenger widebody fleet comprised 78 pc new generation aircraft, one of the highest ratios in the industry.

The airline says it 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.

“Following our strong performance in 2023, in which we achieved AED 1.4 billion (USD 394 million) operating result and a net profit of AED 525 million (USD 143 million), our task at hand is to further strengthen our business as we continue our growth strategy and pursue further margin expansion opportunities,’’ says Antonoaldo Neves, Chief Executive Officer of Etihad Airways.

“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,” adds Neves.