Etihad Airways reported a positive turnaround in 2023, fueled by a surge in passenger demand and cost-cutting measures. The Abu Dhabi-based carrier announced an operating profit of AED 1.4 billion (US$394 million) for the year, a significant improvement from previous years.
This financial success was driven by a remarkable AED 4 billion (US$1.1 billion) increase in passenger revenue compared to 2022. This growth reflects a strong rebound in travel demand, with the airline carrying 14 million passengers in 2023 - a 40% increase year-on-year. This surge in passenger numbers was further bolstered by a higher average load factor, which reached 86% in 2023 compared to 82% in the previous year.
Etihad's profitability was also bolstered by a successful cost-management strategy. The airline achieved a 7% reduction in unit cost excluding fuel, demonstrating their commitment to operational efficiency. This decrease reflects efforts to streamline operations and optimize resource allocation.
While passenger revenue and cost management were key drivers of Etihad's success, cargo revenue experienced a decline in 2023. This decrease, amounting to 38% compared to 2022, reflects a global cooling in cargo rates following exceptional yields experienced during the pandemic.
Despite the decline in cargo revenue, Etihad's overall financial performance in 2023 demonstrates a significant turnaround for the airline. The company's strategic focus on passenger travel, coupled with effective cost management, has positioned them for continued growth and profitability in the future.