Etihad Airways Delivers Record-Breaking Financial Performance

Etihad Airways has delivered record-breaking financial performance and highest-ever customer satisfaction performance in the first quarter of 2025, building on last year’s momentum with further notable improvements across revenue, operational efficiency, and fleet expansion.

Profit after tax reached AED 685 million (U.S.$ 187 million), marking a 30% increase year-on-year, driven by robust passenger demand and operational efficiencies. Total revenue saw a 15% rise compared to Q1 2024, supported by both passenger and cargo business.

Etihad continues to lead the region in passenger growth, carrying 5.0 million guests in Q1 2025 – a 16% year-on-year increase – and maintaining strong momentum into Q2. With nearly 20 million passengers carried over the last 12 months, Etihad is the fastest-growing airline in the region.

Customer satisfaction reached a record high in Q1 2025, with scores improving by 20% year-on-year. Gains were recorded across key touchpoints, including check-in, boarding, inflight service, food and beverage, Wi-Fi, and the updated website and mobile app. The quarter also saw the launch of new lounge and inflight menus, alongside upgraded service standards.

The fleet continued to expand to support the guest experience. One additional A380 returned to service during the quarter, offering First Apartments and The Residence. In April, Etihad took delivery of another A350-1000, with another Boeing 787 Dreamliner to follow. These new aircraft feature ultra-high-speed Wi-Fi and updated inflight entertainment systems.

Etihad also advanced its premium offering, expanding First Class to more routes and preparing new ground and inflight services for rollout from August.

In April, the airline introduced its new A321LR cabin, becoming the first in the region to offer First Class on a single-aisle aircraft. The cabin features exclusive private First suites and lie-flat Business seats, bringing widebody comfort to medium-haul routes. The broader First class experience will include a new concierge service, private chauffeur transfers, dedicated check-in, meet-and-assist service, and baggage-free travel options in Abu Dhabi.

Passenger revenue grew by 16% reaching AED 5.5 billion (U.S.$ 1.5 billion), driven by increased capacity, continued network expansion and increased flight frequencies.

Passenger growth was boosted by a 14% rise year-on-year in Available Seat Kilometres (ASK) and an improved passenger load factor of 87% (+1 pp year-on-year). Fleet expansion accelerated, with 98 aircraft in operation by the end of the quarter, including the reintroduction of Etihad’s sixth A380. The operating fleet further grew in the month of April with the delivery of an additional A350-1000.

Etihad operated 80 destinations as of March 2025, with 16 new routes launching this year to support continued growth and broaden access to key global markets.

Improved cargo yield led to cargo revenue growth of 8% year-on-year, despite a 4% reduction in volumes.

The strong operational performance is reflected in the EBITDA, which rose by 32% year-on-year, reaching AED 1.4 billion (U.S.$ 379 million), boosting the EBITDA margin to 21% (+3 pp compared to the same period of 2024).

Further strengthening financial resilience, net leverage improved to 1.1x, down from 1.9x in March 2024, driven by scheduled debt repayments and strong cash generation. Cash flow from operations reached AED 1.8 billion (U.S.$ 500 million), reflecting an 11% increase year-on-year.

Highlights

• Profit after tax reached AED 685 million (U.S.$ 187 million), up 30% year-on-year, with profit margin at 10% (+1pp year-on-year)

• Customer satisfaction improved year-on-year, supported by enhancements to the onboard experience, airport services, and on-time performance

• Capacity continued to expand with ASK growing by 14% year-on-year due to additional aircraft (+9 year-on-year) and higher aircraft utilisation

• Carried 5.0 million passengers, a 16% increase year-on-year, with load factor improving to 87%, up 1 pp year-on-year

• Strong network with 80 destinations operated in March 2025 and 16 new destinations to be launched in 2025

• Total Revenue grew 15% year-on-year, reaching AED 6.6 billion (U.S.$ 1.8 billion), driven by both passenger and cargo business

• Passenger revenue reached AED 5.5 billion (U.S.$ 1.5 billion), supported by increasing volumes

• Cargo revenue rose 8% year-on-year, despite a 4% drop in volumes, supported by higher yields

• Strong revenue and cost efficiencies boosted EBITDA by 32% year-on-year to AED 1.4 billion (U.S.$ 379 million), with EBITDA margin at 21% (+3pp year-on-year)

• Strong cash generation with cash flow from operation at AED 1.8 billion (U.S.$ 500 million), an increase of 11% year-on-year

• Net leverage at 1.1x (from 1.9x in March 2024), supported by debt repayments and strong cash generation