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Trade Arabia
19-02-2025
- Business
- Trade Arabia
Etihad Airways posts record profit of $476m
Etihad Airways today announced its results for the full year 2024, recording strong performance across all key metrics with a AED1.7 billion ($476 million) profit after tax driven by AED20.8 billion ($5.7 billion) passenger revenue and AED4.2 billion ($1.1 billion) cargo revenue, alongside significant operational efficiency improvements. The airline carried 18.5 million passengers last year, a 32 per cent increase from the previous year, reflecting strong and sustained demand across its expanding network. This growth was supported by a 28 per cent year-on-year increase in Available Seat Kilometres (ASK) and an improved passenger load factor, which reached 87 per cent in FY24, compared to 86 per cent in 2023. Total revenue saw a remarkable year-on-year increase of 25 per cent to AED25.3 billion ($6.9 billion). This growth was driven by a robust performance in both passenger and cargo business. Passenger revenue increased by AED4.2 billion ($1.1 billion), or 25 per cent compared to 2023, reflecting an enhanced network and increased capacity. Cargo revenue rose by 24 per cent compared to last year, fuelled by increased capacity and volume (12 per cent increase in cargo leg tonnes carried), alongside improved yields in the second half of the year. In 2024, the airline expanded its operations to over 1,700 weekly flights and increased frequencies on 25 routes over the past two years. It also launched more than 20 new destinations, such as Boston, Jaipur, Bali, and Nairobi, alongside summer hotspots like Antalya, Nice, and Santorini, with over 10 of these cities set to begin operations in 2025. The airline's operating fleet continued to expand with the addition of 12 aircraft, including the introduction of a new fleet-type, with six A320 NEOs, and the re-entry into service of its fifth A380. Etihad now operates the youngest and most fuel-efficient fleet in the region, supporting its ESG strategy to minimise carbon emissions while enhancing its service offerings. The airline invested in customer experience enhancements, driving a significant NPS increase, reflecting higher operational and service satisfaction. In 2024, the airline approved a AED3 billion retrofit program—its largest-ever—which, once underway, is expected to further elevate cabin comfort, inflight experience, and NPS. Etihad also introduced a dedicated premium call centre, delivering faster and more personalised service for premium travellers, leveraging AI to boost productivity. Over 200 enhancements were made to the website and app to further improve the guest experience. Additionally, the airline's loyalty programme, Etihad Guest, reached a milestone of 10 million members. Recognising these achievements, Etihad received multiple industry awards from bodies such as World Travel Awards and Business Traveller Awards, including Best Cabin Crew, Best Customer Experience, Best Economy Class, and Best First Class Lounge. It was also named Environmental Airline of the Year by in 2024 for the third consecutive year. Etihad's team grew to over 11,000 employees, with more than 2,000 new hires and over 1,500 promotions. UAE National Talent initiatives progressed, with over 70 Emirati cadet pilots graduating and more than 3,000 applications received for the latest cadet programme. UAE Nationals now represent 20 per cent of the workforce, underscoring Etihad's support for the UAE talent strategy and its role in developing future aviation professionals. Mohammed Ali Al Shorafa, Chairman of Etihad Airways, said: 'We extend our gratitude to our guests and the dedicated Etihad family for allowing us to realise our ambitions and consistently delivering the reliable, best-in-class service that defines our operations. The unwavering commitment of our team has strengthened our airline, boosting efficiency while consistently improving our exceptional customer experience. 'As we expand our network and enhance our offerings, we remain focused on connecting more people with Abu Dhabi and supporting the Emirate's tourism ambitions, fulfilling our vision to be the airline that everyone wants to fly.' Antonoaldo Neves, Chief Executive Officer of Etihad Airways, said: 'These results are testament to the dedication of our people who have worked together for a purpose, delivering our strategy. Their efforts have driven improvements in customer satisfaction measured across all cabin classes and numerous other touchpoints. Equally they have delivered sustainable, profitable growth while maintaining disciplined efficiency and a steadfast commitment to safety. 'Looking ahead, I am confident we will continue to be a financially strong airline delivering extraordinary customer experiences, fulfilling our shareholder's mandate, and contributing to the long-term prosperity and success of the UAE.' Throughout 2024, Etihad strengthened profitability and expanded margins through an optimised fleet and network, improved efficiency, and a continued focus on productivity. The airline continued to strengthen its network through 126 interline, codeshare, and strategic partnerships, including a landmark partnership with China Eastern, the first of its kind between a Middle Eastern and Chinese airline, and a strategic partnership with SF Airlines to boost logistics capacity and network reach. Etihad had further increased operational efficiency, with CASK and CASK ex-fuel decreasing by 3 per cent and 4 per cent respectively. Increased efficiency is also evident in costs related to central functions, which grew much lower than capacity. Strong top-line performance and continued improvements in unit costs drove a remarkable operating result, with EBITDA reaching AED4.7 billion ($1.3 billion), a 32 per cent year-on-year increase. Profit after tax for FY24 more than tripled year-on-year, driven by strong momentum in the passenger business, a robust recovery in Etihad's cargo operations, and a significant reduction in net finance costs – down by almost AED1 billion, or 80 per cent year-on-year – reflecting continuous balance sheet deleveraging supported by strong cash generation.
Hi Dubai
06-02-2025
- Business
- Hi Dubai
FAB Reports Strong 2024 Financial Performance with AED17.1 Billion Net Profit
First Abu Dhabi Bank (FAB) has announced robust financial results for 2024, achieving a net profit of AED17.1 billion, marking a 4% year-on-year (YoY) growth. The bank's revenue surged 15% to AED31.6 billion, driven by increased client activity, strong business volumes, and diversified income streams. Quarterly and Full-Year Growth FAB's Q4 2024 net profit rose 4% YoY to AED4.2 billion, while revenue for the quarter grew 11% YoY to AED7.7 billion. Profit before tax for the full year increased 13% YoY to AED19.9 billion, reinforcing FAB's position as the UAE's global bank. Asset and Loan Growth The bank's total assets expanded 4% YoY to AED1.21 trillion, with loans, advances, and Islamic financing increasing 9% YoY to AED529 billion. Customer deposits also saw a 3% YoY rise to AED782 billion, reflecting the bank's strong financial position. Dividend Announcement FAB's Board of Directors has proposed a cash dividend of 75 fils per share, amounting to AED8.3 billion, representing 51% of the group's net profit. The proposal is subject to shareholder approval at the Annual General Meeting on March 11, 2025. Expanding International Presence FAB's international operations saw 32% revenue growth, strengthening its footprint across 20 key financial markets. The bank also increased its investment banking revenue by 19% YoY and saw a 20% rise in new-to-bank customers. Commitment to Sustainability FAB made significant progress in ESG initiatives, facilitating AED267 billion in sustainable financing, surpassing 50% of its 2030 target of AED500 billion. It also became the first regional bank to publish a TNFD report, reaffirming its commitment to environmental resilience. H.H. Sheikh Tahnoon bin Zayed Al Nahyan, Chairman of FAB, stated, 'FAB's performance in 2024 reflects our strategic expansion and alignment with the UAE's vision as a global financial hub.' Looking ahead, FAB aims to continue driving sustainable growth, innovation, and economic integration across key markets. News Source: Emirates News Agency
Emirates 24/7
06-02-2025
- Business
- Emirates 24/7
FAB reports profit before tax of AED19.9 billion in 2024
First Abu Dhabi Bank (FAB) has achieved solid results in 2024, with Group net profit reaching AED17.1 billion, up 4 percent year-on-year (yoy), driven by a 15 percent increase in revenue to AED31.6 billion. Profit before tax grew 13 percent yoy to AED19.9 billion, reflecting increased client activity, strong business volumes, diversified income streams and ongoing operating efficiencies across the franchise. This performance marks consecutive years of sustained growth in scale and profitability, solidifying FAB's position as the UAE's global bank. Net profit for the fourth quarter of 2024 reached AED4.2 billion, up 4 percent yoy, while revenue for Q4'24 increased by 11 percent yoy to AED7.7 billion. FAB's Board of Directors is recommending a cash dividend of 75 fils per share for the full year ended 31st December 2024, representing a total dividend payout of AED8.3 billion and 51 percent of group net profit available for distribution. The dividend proposal is subject to shareholder approval at the bank's Annual General Meeting scheduled to be held on 11th March 2025. Double-digit revenue growth in both domestic (11 percent) and international (32 percent) franchises supported the expansion of the asset base during 2024, while the bank's international franchise strengthened its global footprint across 20 key financial markets. Total assets increased 4 percent yoy to AED1.21 trillion as of December-end 2024, with a 9 percent yoy growth in loans, advances and Islamic financing to AED529 billion for the period, and customer deposits up by 3 percent yoy to AED782 billion. H.H. Sheikh Tahnoon bin Zayed Al Nahyan, Chairman of FAB, said, "FAB's performance in 2024 cements consecutive years of expanded scale and improved profitability, demonstrating steady progress against our Group strategy as the UAE's global bank. Fuelled by the UAE's economic growth and the bank's strategic leaps in growing relationships across key economic corridors and markets, FAB delivered strong results last year, supported by record business volumes, successful diversification and innovation. The bank's achievements solidified the nation's standing as a premier financial and business hub, and delivered on our leadership's vision for an open, efficient, and globally integrated business environment. As the UAE's global bank for businesses and investors, FAB is fully aligned with this vision and remains a key enabler of the UAE's global aspirations." He added that the Board of Directors recommends a cash dividend of 75 fils per share for 2024, representing a total dividend payout of AED8.3 billion. "Looking ahead, FAB will remain vital to driving the UAE's future vision, fostering sustainable growth and innovation, and connecting local, regional, and international economies within a world-class financial ecosystem," H.H. Sheikh Tahnoon stated. Hana Al Rostamani, Group Chief Executive Officer of FAB, said, "Our strategy produced robust results in the UAE, our thriving home market and the foundation of our growth, while powering the expansion of our international franchise, as we diversified growth across customer segments and sources of income and grew international revenue by 32 percent. Our balance sheet strength is a cornerstone of our success. Our solid capital and liquidity positions and disciplined risk management form the foundation of our ability to deliver resilient and sustainable growth, underpinning the trust that our customers and stakeholders place in us." She added that the bank have also made clear progress on ESG, facilitating AED267 billion of sustainable and transition financing projects to-date, which represents over half of the Group's 2030 target of AED500 billion. FAB also made further strides towards carbon emission reduction targets and became the first bank in the region to publish a TNFD report recognising the bank's responsibility to support a nature-positive future by aligning financial practices with environmental resilience. Investment Banking revenue grew 19 percent yoy while maintaining top rankings across key MENA IB league tables. Global Markets also increased revenue by 18 percent. FAB reported a 20 percent rise in new-to-bank customers, while lending and deposits grew 15 percent and 17 percent, respectively, with a significant growth in CASA balances Continued enhancement of the private banking offering resulted in 75 percent yoy growth in assets under management. FAB remained a regional leader in green and social bonds and sukuk issuances, with US$4.1 billion outstanding. Furthermore, the bank provided over AED4.3 billion in new financing to SMEs during FY'24, 30 percent higher than the prior year. Follow Emirates 24|7 on Google News.
