Etihad Airways, Abu Dhabi’s national carrier announced its operational results for the year 2023. The airline reported an operating result of AED1.4 billion ($394 million), driven by a substantial year-on-year growth of AED4 billion ($1.1 billion) in passenger revenue.
This growth in revenue, coupled with a seven percent decrease in unit cost excluding fuel, demonstrates a significant improvement in the airline’s passenger business profitability.
However, although the company boasted high returns in 2023, CEO Antonoaldo Neves thinks the airline could do better.
Speaking to selected media at the Abu Dhabi headquarters, he said, “2023 was a year where we had a good result, I would not say it was extraordinary.”
Surging passenger numbers
In 2023, Etihad Airways carried approximately 14 million passengers, representing a 40 percent increase compared to the previous year. This surge in passenger numbers highlights the continued strong demand for travel across the airline’s expanding network.
The overall load factor for the year reached 86 percent, up from 82 percent in 2022. The total revenue for the year ending on December 31, 2023, amounted to AED20.3 billion ($5.5 billion), compared to AED18.3 billion ($5.0 billion) in 2022.
Last year, Etihad Airways expanded its network by adding 15 new destinations, including cities such as Lisbon, Copenhagen, Kolkata, and Osaka. The airline also increased its operating fleet by 14 aircraft, supporting a growth of approximately 30 percent in Available Seat Kilometers (ASKs).
“We have more frequencies to India than Emirates and Qatar [airways] in many markets,” he said.
Focusing on strengthening financial position
Etihad Airways also focused on strengthening its financial position by reducing net leverage from 5.0x net debt to EBITDA in 2022 to 2.5x in 2023. This achievement was accomplished through robust cash-flow generation, controlled capital expenditures, improved aircraft utilisation, and the re-activation of previously parked aircraft.
“Even though we are cutting costs, we are spending seven percent less per unit cost, our customer satisfaction went up,” Neves boasted.
He further affirmed that although overall costs were cut, spending in the UAE was up by 32 percent, “in addition to making money, we also have to give back to Abu Dhabi and to the UAE.”
The airline’s success in 2023 can be attributed to its strategic reorganisation, which involved divesting from ancillary support services and businesses, optimising its fleet to include the most efficient and advanced aircraft, streamlining its destination network, and prioritising productivity and cost savings.
78 percent of Etihad’s passenger widebody fleet consists of new-generation aircraft, making it one of the industry leaders in operational efficiency and contributing significantly to its reduced emission targets.
The CEO further revealed that the airline plans to invest $8bn in new-generation aircraft over the next five years. “We have the money,” he said.
Etihad Airways delivering best-in-class service
Etihad Airways also witnessed an increase in positive customer sentiment throughout 2023, driven by the opening the Abu Dhabi Zayed International Airport..
Neves commended the Etihad team and reaffirmed the commitment to sustainable and profitable growth, robust cost control, and operational efficiency, while aligning with the shareholder’s mandate of being a financially viable airline that delivers extraordinary customer experiences.
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,” he added.
Key highlights 2023
- Total revenue growth of AED20.3 billion
- Passenger revenue of AED4 billion
- Cargo revenue of AED3.4 billion
- Cost per Available Seat Kilometre (CASK) and CASK excl. fuel decreased by 8 percent and 7 percent
- Operating result of AED1.4 billion
- Significant reduction in net leverage of Balance Sheet, reaching 2.5x
- Passenger numbers surge to 14 million
- Etihad’s passenger load factor stood at 86 percent, up from 82 percent in 2022
- Network expanded to 72 destinations
| Main financial KPIs | Year ended 31 December | Year ended 31 December | ||
| 2023 | 2022 | 2023 | 2022 | |
| (AED million) | (USD million) | |||
| Revenues | 20,287 | 18,307 | 5,524 | 4,985 |
| Passenger | 16,662 | 12.688 | 4,537 | 3,455 |
| Cargo | 3,357 | 5,377 | 914 | 1,464 |
| Operating result | 1,447 | 1,260(1) | 394 | 343(1) |
| Net profit | 525 | 92(1) | 143 | 25(1) |
| Main Operating KPIs | Year ended 31 December | |
| 2023 | 2022 | |
| ASK (bn) | 72.5 | 56.0 |
| Passenger number (m) | 14 | 10 |
| Passenger load factor (%) | 86% | 82% |
| N. of destinations as of December(2) | 72 | 69 |
| Operating fleet (incl. 5 freighters) | 85 | 71 |
| Cargo tonnes (m) | 371 | 372 |
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