Etihad Airways Achieves $394 Million Operating Profit in 2023 Amid Passenger Revenue Surge
Etihad Airways has announced a remarkable operating profit of $394 million for the year 2023, a significant achievement fueled by a $1.1 billion increase in passenger revenue. The airline also succeeded in reducing its unit costs excluding fuel by seven percent, thereby enhancing the profitability of its passenger business.
The airline reported transporting 14 million passengers in 2023, a 40 percent increase from the previous year, reflecting strong and sustained demand for travel across its expanding network. This demand contributed to an overall load factor of 86 percent, an improvement from 82 percent in 2022. Total revenue for the year reached $5.5 billion, up from $5.0 billion in 2022.
Etihad expanded its global reach in 2023 by introducing 15 new destinations, such as Lisbon, Copenhagen, Kolkata, and Osaka. The airline also increased its operating fleet by 14 aircraft to support approximately 30 percent growth in Available Seat Kilometres (ASKs).
The airline’s strategic initiatives have significantly strengthened its balance sheet, with net leverage improving to 2.5x net debt to EBITDA from 5.0x in 2022. This improvement was made possible by robust cash flow generation and controlled capital expenditure, along with enhanced aircraft utilization and the reactivation of previously parked aircraft.
Etihad’s reorganization efforts have paid off, focusing on the core airline offering by divesting non-core assets, optimizing its fleet for efficiency, streamlining its network, and pursuing cost savings. The airline’s widebody passenger fleet now comprises 78 percent new generation aircraft, positioning Etihad among the industry leaders in operational efficiency and reduced emissions.
His Excellency Mohammed Ali Al Shorafa, Chairman of Etihad Aviation Group, expressed gratitude to customers and the Etihad team for their contributions to the airline’s success. He emphasized Etihad’s commitment to connecting more people with Abu Dhabi and supporting the Emirate’s tourism ambitions.
Etihad also celebrated an increase in customer satisfaction in 2023, further boosted by the inauguration of its new home at Abu Dhabi Zayed International Airport at the year’s end.
Antonoaldo Neves, CEO of Etihad Airways, highlighted the airline’s strategic growth and margin expansion opportunities for the future. He praised the Etihad team’s execution capabilities and reaffirmed the airline’s dedication to sustainable growth, stringent cost control, and operational efficiency.
With its impressive performance in 2023, Etihad Airways is poised for continued success, focusing on delivering exceptional customer experiences and achieving financial viability.