Etihad Airways announced a record profit for the first quarter of 2025, up 30 per cent annually, as demand for travel continues to soar worldwide.
The Abu Dhabi airline reported after-tax profits of Dh685 million ($187 million) for the first three months of this year, compared with Dh526 million for the same period in 2024.
Total revenue rose 15 per cent year-on-year to Dh6.6 billion in the first quarter, driven by both passenger and cargo business, it said in a statement on Wednesday.
Passenger revenue grew by 16 per cent to Dh5.5 billion, driven by increased capacity, continued network expansion and more frequent flights. Cargo revenue rose 8 per cent year-on-year, despite a 4 per cent reduction in volumes, the airline said.
Passenger traffic grew 16 per cent on an annual basis to five million, boosted by a 14 per cent rise in available seat kilometres. Passenger load factor, which measures how much an airline fills its available seats, stood at 87 per cent.
“We’re executing a clear strategy: grow sustainably, operate efficiently and never lose focus on delivering remarkable experiences to our guests,” said Etihad chief executive Antonoaldo Neves.
“Our network continues to expand, with 16 new routes announced for 2025 and additional aircraft joining our fleet. As we grow, we remain disciplined and focused on quality, efficiency and creating value for our customers and stakeholders.”
The airline's earnings before interest, taxes, depreciation and amortisation rose by 32 per cent annually in the first quarter to Dh1.4 billion.
Etihad was operating 80 destinations in March 2025, with 98 aircraft in operation at the end of the quarter, including the reintroduction of its sixth Airbus A380. An additional A350-1000 jet was also delivered in April.
“Etihad’s turnaround strategy is delivering dividends,” Saj Ahmad, chief analyst at StrategicAero Research, told The National.
“The shift to the new terminal at Abu Dhabi’s Zayed International Airport is making connectivity on Etihad’s network drive further efficiencies into the airline and its partnerships with the likes of Air Arabia Abu Dhabi,” he said. “Also, more international connections means they are monetising the routes they operate far better than before.”
Zayed International Airport, Etihad's home base, handled 28.8 million passengers last year, up from 22.4 million in 2023, state-owned operator Abu Dhabi Airports said in February.
Airlines in the Middle East, including Emirates and Qatar Airways, have reported strong profit growth as demand for travel continues to rise globally.
Global passenger traffic rose 5.3 per cent year-on-year in the first quarter of this year, reaching 2.16 trillion revenue passenger kilometres, according to the International Air Transport Association.
Traffic in the Middle East rose 4.2 per cent year-on-year, with capacity up 2.9 per cent, bringing the average passenger load factor to 80.2 per cent, the aviation trade body said. Air ticket bookings in the first quarter for travel in the second quarter to the Middle East indicate a “positive outlook overall”, despite some isolated declines, it said.
Future flight path
“Etihad’s future performance should be strong given that it is in a secure niche with the geographically well-positioned Emirates, Qatar and Turkish operators who share long-haul connecting traffic through their hubs,” aviation analyst Ernest Arvai, president of US-based AirInsight Group, told The National.
Etihad has also outlined plans for its so-called Journey 2030, a seven-year growth agenda announced in November 2023. The strategy calls for doubling its fleet to 170 planes and tripling the number of passengers it carries annually to 33 million as it expands its global network.
Last week, during US President Donald Trump's visit to the UAE, the airline announced an order for 28 Boeing wide-body aircraft with GE engines, valued at $14.5 billion. Delivery of the aircraft, which include 787s and the 777X, will start in 2028.
The carrier already had 53 aircraft on order from Boeing and another 34 from Airbus, bringing the total to 115 new aircraft to be taken up over the next eight years, Mr Arvai said.
“Etihad’s recent confirmation of more 787s and now 777Xs to join its existing wide-body fleet means the airline is well placed to continue its growth as we head into the traditionally busier summer period,” Mr Ahmad said.
“The challenge however, remains navigating erratic fuel prices and opening up new gateways.”
The further expansion of Zayed International Airport will be key, but with it being a TSA approved preclearance facility, Etihad will probably look to further expand US services and capitalise on the market's higher yielding traffic, he added.
Etihad last week said it would add Charlotte, North Carolina, as its sixth US destination, beginning in May 2026. It joins New York, Chicago, Washington, Boston and Atlanta, which will be launched on July 2.
With contributions from Kyle Fitzgerald
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What should do investors do now?
What does the S&P 500's new all-time high mean for the average investor?
Should I be euphoric?
No. It's fine to be pleased about hearty returns on your investments. But it's not a good idea to tie your emotions closely to the ups and downs of the stock market. You'll get tired fast. This market moment comes on the heels of last year's nosedive. And it's not the first or last time the stock market will make a dramatic move.
So what happened?
It's more about what happened last year. Many of the concerns that triggered that plunge towards the end of last have largely been quelled. The US and China are slowly moving toward a trade agreement. The Federal Reserve has indicated it likely will not raise rates at all in 2019 after seven recent increases. And those changes, along with some strong earnings reports and broader healthy economic indicators, have fueled some optimism in stock markets.
"The panic in the fourth quarter was based mostly on fears," says Brent Schutte, chief investment strategist for Northwestern Mutual Wealth Management Company. "The fundamentals have mostly held up, while the fears have gone away and the fears were based mostly on emotion."
Should I buy? Should I sell?
Maybe. It depends on what your long-term investment plan is. The best advice is usually the same no matter the day — determine your financial goals, make a plan to reach them and stick to it.
"I would encourage (investors) not to overreact to highs, just as I would encourage them not to overreact to the lows of December," Mr Schutte says.
All the same, there are some situations in which you should consider taking action. If you think you can't live through another low like last year, the time to get out is now. If the balance of assets in your portfolio is out of whack thanks to the rise of the stock market, make adjustments. And if you need your money in the next five to 10 years, it shouldn't be in stocks anyhow. But for most people, it's also a good time to just leave things be.
Resist the urge to abandon the diversification of your portfolio, Mr Schutte cautions. It may be tempting to shed other investments that aren't performing as well, such as some international stocks, but diversification is designed to help steady your performance over time.
Will the rally last?
No one knows for sure. But David Bailin, chief investment officer at Citi Private Bank, expects the US market could move up 5 per cent to 7 per cent more over the next nine to 12 months, provided the Fed doesn't raise rates and earnings growth exceeds current expectations. We are in a late cycle market, a period when US equities have historically done very well, but volatility also rises, he says.
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