Etihad Airways' profit jumps 47% to Dh2.6b; plans Dh80b investment over 10 years

Abu Dhabi: UAE's national airline Etihad Airways has reported its strongest financial performance in history, posting a record Dh2.6 billion profit for 2025 as margins more than doubled the global airline average.

Airline CEO Antonoaldo Neves said, “2025 has been a defining year for Etihad, delivering our strongest performance across every key metric and marking our fourth consecutive year of profitability”

The Abu Dhabi carrier’s profit after tax rose 47 per cent year-on-year, with its net profit margin improving to 8.4 per cent — more than double the industry average of 3.9 per cent, according to IATA’s December 2025 estimates. It marks the airline’s fourth consecutive year of profitability.

The airline said its total revenue increased 21 per cent year-on-year to Dh30.7 billion, driven by strong performance in both passenger and cargo operations. Passenger revenue rose 24 per cent to Dh25.8 billion, supported by rising demand and higher capacity.

“We are now probably top 10 per cent in terms of net margins. The results have been improving consistently, a little bit every year. The strategy we put together, the expansion we are deploying, investing millions and millions of dollars in customer service, and now we have a plan to invest in the next 10 years: Dh 80 billion in new aircraft,” said Neves.  

He added, “We are going to be getting about 20 aircraft per year for the next five years.” The focus is on new aircraft and product enhancements, said the CEO during a media briefing on Tuesday.

Etihad Airways' Chairman Mohammed Ali Al Shorafa said the performance reflects the strength of the airline’s long-term strategy and its role in advancing Abu Dhabi’s global connectivity and tourism growth.

Etihad carried 22.4 million passengers in 2025, up 21 per cent year-on-year, positioning it as the fastest-growing global full-service network carrier in its category. Capacity expanded at the same pace, while passenger load factor rose to 88.3 per cent.

The airline added 29 aircraft during the year, bringing its fleet to 127, the largest in its history. Its network expanded to 110 destinations, up from 94 the previous year. Aircraft delivered last year include the Airbus A321LR, A350, Boeing B787 deliveries and A380 reactivations.

Commenting on priority areas for 2026, Neves said the airline is staying the course with the strategy set in early 2023 and does not plan any major pivots.

Strong performance also meant strong cash generation. Etihad reported nearly Dh8 billion in operating cash flow, allowing it to fund investments while reducing debt.

Despite the scale of expansion, management stressed that growth will remain disciplined. The airline said inorganic expansion through acquisitions is not part of its strategy, preferring organic growth funded by internal cash generation.

When asked about most profitable routes, Neves said the airline said it does not operate any loss-making destinations.

New routes, which typically take up to two years to mature in the aviation industry, are becoming profitable within their first year of launch, he explained.

“Of course, we have in some markets that perform better than other markets, but on average, we're really, really happy with all destinations that we fly to,” he told Gulf News.

The airline said its network functions as an integrated system, with strength in markets such as Europe and India supporting flows to other regions, including the United States.

Etihad’s expansion also contributed significantly to the UAE’s aviation growth, it said. The airline accounted for approximately 50 per cent of total passenger growth in the UAE in 2025.

Point-to-point traffic to Abu Dhabi increased by 900,000 passengers year-on-year to 5.5 million. The stopover programme also recorded strong growth.