Etihad Airways Reports Record $476 Million Profit For 2024

Very, very well done, Etihad! An airline that keeps its head down and goes about its business, but fantastically, without EK’s or QR’s big marketing and to some extent PR bluster. While of course QR has fabulous hard and soft products, it can drop the ball pretty badly at times, which Etihad seldom does. It’s lovely to see EY do well in terms of both product and profitability; too bad Airberlin and Jet Airways didn’t live to see this day.

Hope Riyadh Air goes down the same route when it launches, as I imagine RX will be cut from the same cloth as EY — especially with Tony Douglas at the helm. It’ll be an EVA vs Starlux of sorts, but with a bit less drama!

"Passenger revenue was $5.67 billion, compared to $4.54 million the year before"
Do you mean $4.54 billion the year before?

@ Ken -- Whoops, indeed. Fixed. Thanks!

Impressive results.

Their route network still seems much smaller than the Flying Reimagined days. Surely there are plenty of destinations they can sensibly restore?

"Prior to the pandemic, Etihad engaged in possibly the worst airline investment strategy in history, in order to create the Etihad Airways Partners concept."

It was almost as disastrous as the Swissair's 'Hunter Strategy', devised by McKinsey and responsible for Swissair's demise. SAir acquired significant stakes in Sabena, Air Liberté, AOM, Air Littoral, Volare, LOT, Turkish Airlines, South African Airways, Portugália and LTU. With plans for stakes in Aer Lingus, Finnair, Malév, TAM, Transbrasil and Alitalia!

So Etihad's strategy was eerily familiar for those of us who were around in the 1990s.

SFO and LAX should both be pretty easy and lucrative restorations.

Is there an industry that’s not been utterly ruined by overzealous McKinsey analysts who just finished their MBAs and want to make a mark?

Knowing their commercial leadership team, they will not deviate from the script of what works. If they have publicly said no to US West Coast, they probably are not looking into it. What I have been impressed with the razor focus on where to grow, and not deviating from it. Places like Africa where they don't play well, they don't go. No misadventures to Brazil, etc. I think this is a sign of their confidence in themselves versus needing to do 100 things. That is a big difference from the past in my view.

The quickest way to become a millionaire is to start as a billionaire and then consult McKinsey for advice

Consultants are almost always a scam. Industry should just die out.

to Ben's question about how they reduced finance costs, EY noted strong cash generation. Airlines typically generate large amounts of cash and for a growing profitable airline, that cash can quickly be used for profits or debt repayment.

They haven't provided all of the financials but I imagine they are simply able to pay down debt due to strong demand and healthy fares.

Beat me to it. Though I'd definitely say that Swissair's was more disastrous, as it basically took the carrier down. The horrid crash of flight 111, didn't help either.

I just have to wonder, they have so few widebodies coming in, yet they're going to "waste" one on Atlanta of all places? There's gotta be more to it than that. Especially with them forming so many new partnerships, and even joint-ventures (China Eastern) with Skyteam carriers.

I know that Delta likes to pretend that Riyadh Air is some amazing thing, but the reality is, they're no more than marketing fluff at this point. They haven't flown a single passenger, won't for likely a year or years, and even once they do, they still won't have any significant network to speak of for years on end after that.

So I really do wonder if Delta and Etihad are working on something, and have just been really tight about leaks. It's the only thing that would seemingly make sense with what they're doing with Atlanta. Emirates couldn't even be bothered with the place, and Qatar and Turkish have been taking up the regional demand, yet haven't seen fit to really grow there at all.

Etihad’s financial results for 2024 are impressive, especially considering its past struggles, but it’s worth comparing them to a truly premium airline like Delta. While Etihad posted a profit of $476 million, Delta reported a net income of $4.6 billion in 2023—nearly ten times higher. Delta’s passenger revenue alone was over $50 billion, dwarfing Etihad’s $5.67 billion.

Beyond scale, Delta’s premium positioning sets it apart. Delta commands higher yields through a robust loyalty program, corporate travel dominance, and premium cabin offerings, whereas Etihad operates in a more cost-sensitive market with less emphasis on high-yielding frequent flyers. Additionally, Delta’s strong labor unions mean higher costs, yet it still maintains profitability, whereas Etihad benefits from the Middle Eastern labor model with lower costs.

While Etihad’s turnaround is commendable, it remains a much smaller and less premium airline compared to Delta. The real test will be whether it can sustain this profitability while aggressively expanding.

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Ben will get to it but keep in mind these people's entire online existence is incapable of following norms.

It will be an ongoing process of whack-a-mole (no offense to real moles)

If they have publicly said no to US West Coast, they probably are not looking into it.

There is no such permanency in the commercial aviation industry. EY could just as easily announce those routes tomorrow, should anything appear to shift such markets into their advantage/favor.

And rest assured, they are indeed constantly monitoring them, regardless of whatever they've publicly claimed.

It will be interesting for them to try to do a IPO. They will need to disclose fuel costs and other metrics. When it becomes obvious they are way below what others declare, they will likely start to face a lot of scrutiny from any authorities interested in state subsidies and level playing field.

A disclosure they carefully avoid until now.