DUBAI – Etihad Airways said on Tuesday it reported a nearly 50% increase in net profit to $698 million last year as increased capacity supported strong demand across the market and boosted load factors.
“We have invested heavily in our products and customer satisfaction. We have added capacity and grown significantly. … So you can say this is a continuation of our efforts,” CEO Antonoardo Neves told Reuters.
Abu Dhabi Airlines announced that it added 29 new jets in the same year with deliveries from both Boeing and Airbus, and with the return to service of the A380, passenger numbers rose 21% to 22.4 million aircraft, expanding its fleet to 127 aircraft by 2025.
Neves said the company is seeing signs of continued strength in demand this year, with “premium demand getting stronger and stronger.”
“Our load factor last year was 88%,” he said. “We’ve had so many 90 percent days this year. We wouldn’t have had that if the economy hadn’t been doing as well.”
“I think the great news we’ve got is that the new markets are performing much better than we thought… they’re maturing much faster than we actually expected,” he said, without citing specific regions.
Expansion plans in Asia and Europe
Last year, Gulf Air launched new routes including Prague, Hanoi and Hong Kong.
Asked about further route expansion this year, Neves said the company is planning further expansion in China, Southeast Asia and Europe.
Airlines have struggled to deliver planes amid rising demand, with Boeing Co. hit by multiple crises in recent years and Airbus Corp. struggling with supply chain constraints.
Neves said Etihad Airways is focused on keeping the retrofit program on schedule, working with manufacturers to ensure timely deliveries.
“So far, it’s not great… but it’s improving,” Neves said, noting that the airline expects about 20 more planes to be delivered this year, mainly from Airbus.
($1 = 3.6729 UAE Dirham)
(Reporting by Federico Maccioni; Editing by Louise Heavens)
