Tuesday, 03 June 2025

Etihad Airways Achieves Record $476M Profit in 2024

Published: Saturday, March 01, 2025
Etihad Airways Achieves Record $476M Profit in 2024

Etihad Airways has announced a record-breaking profit for the year 2024, achieving a remarkable AED 1.7 billion (approximately US$ 476 million) in profit after tax. This achievement marks the airline's highest-ever profit, driven by significant growth in both passenger and cargo revenues, alongside notable operational efficiency improvements.

Key Financial Highlights

  • Total Revenue: Etihad Airways reported a total revenue of AED 25.3 billion (US$ 6.9 billion), reflecting a substantial year-on-year increase of 25% compared to 2023.
  • Passenger Revenue: The airline's passenger revenue reached AED 20.8 billion (US$ 5.7 billion), which is a 25% increase from the previous year, contributing significantly to the overall profit.
  • Cargo Revenue: Cargo operations also performed well, generating AED 4.2 billion (US$ 1.1 billion) in revenue, marking a 24% rise compared to 2023.

Operational Performance

In 2024, Etihad Airways carried 18.5 million passengers, representing a 32% increase from the previous year. This growth was supported by a 28% increase in Available Seat Kilometers (ASK) and an improved passenger load factor, which reached 87%, up from 86% in 2023. The airline expanded its operations to over 1,700 weekly flights and increased frequencies on 25 routes, while also launching more than 20 new destinations, including cities like Boston, Jaipur, Bali, and Nairobi.

Fleet and Sustainability Initiatives

Etihad's operating fleet expanded with the addition of 12 new aircraft, including six A320 NEOs and the re-entry of its fifth A380 into service. The airline now boasts the youngest and most fuel-efficient fleet in the region, aligning with its Environmental, Social, and Governance (ESG) strategy aimed at minimizing carbon emissions.

Customer Experience Enhancements

The airline has made significant investments in enhancing customer experience, which has led to a notable increase in its Net Promoter Score (NPS). In 2024, Etihad approved a AED 3 billion (US$ 816 million) retrofit program, its largest to date, aimed at improving cabin comfort and inflight experience. Additionally, over 200 enhancements were made to the airline's website and mobile app to further improve guest experience.

Workforce Development

Etihad Airways has also focused on workforce development, growing its team to over 11,000 employees, with more than 2,000 new hires and over 1,500 promotions. UAE Nationals now represent 20% of the workforce, reflecting the airline's commitment to supporting the UAE talent strategy and developing future aviation professionals.

Recognition and Awards

The airline's achievements in 2024 have not gone unnoticed, as it received multiple industry awards, including accolades for Best Cabin Crew, Best Customer Experience, and Best First Class Lounge. Furthermore, it was named Environmental Airline of the Year by AirlineRatings.com for the third consecutive year.

Leadership Statements

His Excellency Mohammed Ali Al Shorafa, Chairman of Etihad Airways, expressed gratitude to the airline's guests and staff for their contributions to this success. CEO Antonoaldo Neves highlighted the dedication of the team in delivering exceptional customer experiences and sustainable growth.

Etihad Airways' impressive performance in 2024 underscores its commitment to operational excellence and customer satisfaction, positioning it as a leading airline in the region.

Mumbai Airport’s Cash Deposit Policy Sparks $23M Clash with IndiGo and Air India

Published: Monday, June 02, 2025
Mumbai Airport’s Cash Deposit Policy Sparks $23M Clash with IndiGo and Air India

The Adani Group-operated Mumbai International Airport (BOM) has implemented a controversial payment policy requiring airlines to provide cash deposits in banks as security for airport fees, replacing the traditional acceptance of bank guarantees

 This policy, introduced eight months ago in October 2024, has triggered strong opposition from India’s two largest carriers, IndiGo and Air India, which together control 91% of the domestic aviation market.

Policy Shift and Rationale
Mumbai Airport now mandates compulsory cash deposits to cover charges such as landing and parking fees, citing persistent delays in airline payments that disrupt the airport’s cash flow.

 Arun Bansal, CEO of Adani Airport Holdings (which holds a 74% stake in BOM), explained that airlines frequently pay beyond month-end deadlines, while the airport must meet its own financial obligations earlier.

This mismatch creates working capital challenges that the cash deposit system aims to resolve. Bansal noted, “They have taken advantage of our niceness,” referring to the resistance from IndiGo and Air India since the policy’s implementation.

Financial Impact on Airlines
The new requirement imposes a significant financial burden on IndiGo and Air India, estimated at a combined deposit of around 2 billion rupees (approximately $23 million).

This is particularly concerning for Air India, which reported losses of $521 million last year and faces additional financial pressures due to Pakistan’s airspace closure impacting its operations. Neither airline has publicly responded to inquiries about the policy change.

Airport’s Financial Challenges
Mumbai Airport itself is under financial strain, having posted losses of $71 million on revenues of $461 million in the previous fiscal year. The airport’s management has cited its deteriorating financial position and substantial debt obligations as reasons for the policy shift, emphasizing that the cash deposits will enhance financial stability and improve its credit rating.

 The airport also highlighted the need to protect itself against risks of airline bankruptcies, referencing recent collapses of carriers like Jet Airways and Go First.

Industry and Government Response
The International Air Transport Association (IATA), representing both IndiGo and Air India, has raised concerns with India’s civil aviation ministry, opposing the policy as a means for the airport to fund its working capital needs.

The Federation of Indian Airlines has disputed claims that airlines habitually delay payments. Air India has also lobbied the government, warning that similar policies at other airports could exacerbate financial pressures across the aviation sector. The civil aviation ministry, which holds a 26% stake in Mumbai Airport, has not publicly commented on the dispute.

Enforcement and Passenger Impact
While Mumbai Airport retains the authority to cancel airline slots for non-compliance, it has stated it will avoid such actions to protect passenger interests, balancing enforcement with operational continuity.

This payment policy change at Mumbai International Airport underscores growing financial tensions in India’s rapidly expanding aviation market, highlighting the challenges faced by both airport operators and airlines in managing cash flows amid economic pressures.

 

Saudi Arabia Eyes Multi-Billion Airbus Deals to Boost Aviation Growth

Published: Monday, June 02, 2025
Saudi Arabia Eyes Multi-Billion Airbus Deals to Boost Aviation Growth

Saudi Arabia is preparing to place orders worth billions of dollars for Airbus aircraft as part of its strategy to diversify suppliers and accelerate aviation growth to rival its Gulf neighbors, industry sources revealed.

Leasing company AviLease, which recently ordered 30 Boeing 737 MAX jets during U.S. President Donald Trump’s visit to the region, is expected to place a comparable order for Airbus A320neo jets at next month’s Paris Airshow.

The company, aiming to become a top global aircraft lessor, is also reportedly interested in Airbus A350 freighters.

Startup airline Riyadh Air is poised to select the Airbus A350 over Boeing’s delayed 777X, with a potential deal involving up to 50 A350 aircraft anticipated to be announced at an upcoming trade show this year. Riyadh Air is currently studying an order for large wide-body planes, with a decision expected in the coming months.

Airbus declined to comment, and AviLease was not immediately available for comment.

These developments come amid Saudi Arabia’s broader aviation expansion, including Saudia Group’s historic order for 105 Airbus narrowbody jets, marking the largest aircraft deal in the kingdom’s history.

This order includes 54 A321neos for Saudia and additional A320neo and A321neo aircraft for its subsidiary Flyadeal, with deliveries scheduled from 2026 through 2032.

Saudi Arabia’s aviation growth is a key component of its Vision 2030 economic diversification plan, aiming to triple annual passenger traffic and establish the kingdom as a major aviation and tourism hub by the end of the decade.

The combined efforts of Saudia, Riyadh Air, and leasing firms like AviLease signal a significant expansion of the Saudi fleet, positioning the country to compete strongly in the Gulf aviation market.

 

Turkey Fines Passengers Up to $70 for Standing Before Plane Stops to Boost Safety and Order

Published: Monday, June 02, 2025
Turkey Fines Passengers Up to $70 for Standing Before Plane Stops to Boost Safety and Order

Turkey has introduced a new travel regulation imposing fines of up to 2,603 Turkish lira (approximately $70 or Dh255) on passengers who stand up, unbuckle their seatbelts, or open overhead bins before the aircraft has come to a complete stop.

 The Turkish Directorate General of Civil Aviation (DGCA) has mandated airlines to update their in-flight announcements to warn travelers about this rule, and cabin crews are required to report any violations.

This crackdown addresses growing safety concerns and chaotic disembarkation scenes. The DGCA warns that premature movement can lead to injuries caused by sudden stops, falling luggage, and blocked aisles that could hinder emergency evacuations.

Turkish Airlines, the country’s flag carrier, has already incorporated clear warnings about penalties into its landing announcements. With millions of tourists passing through Turkey annually, the measure aims to enhance both passenger safety and orderly flow during disembarkation.

Passengers are now required to keep their seat belts fastened and remain seated until the plane has fully stopped and the seatbelt sign is turned off. Opening overhead compartments or crowding the aisle prematurely is prohibited. Violators will be reported to authorities and fined accordingly.

This issue is part of a broader global challenge. According to the International Air Transport Association (IATA), failure to follow crew instructions remains the most common form of unruly passenger behavior worldwide.

 In the United States, the Federal Aviation Administration (FAA) can impose fines up to $37,000 per violation and may pursue jail time in severe cases. During the pandemic, incidents surged due to disputes over mask mandates, with flight attendants frequently facing harassment, verbal abuse, and physical violence, prompting stricter enforcement measures.

In India, a similar problem persists where passengers often stand up immediately after touchdown, causing crowded aisles and onboard chaos.

 While India’s Directorate General of Civil Aviation (DGCA) enforces regulations against serious unruly behavior, minor infractions like standing during taxiing are rarely penalized, allowing the trend to continue.

Experts emphasize that the few seconds saved by rushing to exit are not worth the increased risk of injury or delays caused by premature movement.

Following Turkey’s lead, other countries, including India, may consider implementing similar fines to improve passenger discipline and safety. Ultimately, waiting until the plane fully stops before standing up is a small inconvenience that significantly reduces risk and enhances overall travel safety.

 

Filipino Tycoon to Assume Airport Control Starting June 1

Published: Sunday, June 01, 2025
Filipino Tycoon to Assume Airport Control Starting June 1

Aboitiz InfraCapital Inc. (AIC), the infrastructure arm of the Aboitiz Group led by billionaire Sabin Aboitiz, officially takes over the operations and maintenance of Bohol-Panglao International Airport (BPIA) starting today, following its successful no-competition bid worth $81.18 million (₱4.53 billion).

Major Expansion in Philippine Aviation Sector
This marks a significant milestone for AIC as it aggressively expands its footprint in the Philippine aviation industry. BPIA, which opened in November 2018 on Panglao Island, Bohol, replaced the older Tagbilaran Airport to accommodate the rising tourism demand in the region.

The 30-year concession agreement includes comprehensive upgrades, expansion, and maintenance of the airport facilities.

Investment and Capacity Upgrades
AIC plans to invest ₱4.53 billion to modernize BPIA, including expanding the passenger terminal, installing state-of-the-art aviation systems, and enhancing both airside and landside facilities.

The company aims to increase the airport’s annual passenger capacity from 2 million to 2.5 million within two years, with a further expansion to 3.9 million passengers expected by 2030.

Strategic Importance and Vision
Cosette Canilao, AIC President and CEO, emphasized that the modernization of BPIA is not merely about infrastructure upgrades but also about supporting Bohol’s growth as a vibrant tourism and economic hub in the Visayas region.

The development aligns with the Philippine government’s infrastructure advancement goals and reinforces Aboitiz’s commitment to enhancing regional gateways.

Expanding Airport Portfolio
This takeover adds to Aboitiz’s growing portfolio of airports, which includes Mactan-Cebu International Airport and Laguindingan International Airport. The latter was officially handed over to AIC in April 2025.

Aboitiz’s acquisition of Mactan-Cebu International Airport in 2022 for ₱25 billion marked the company’s strong entry into the country’s aviation infrastructure sector.

Official Signing and Future Outlook
The concession agreement was officially signed in December 2024, with President Ferdinand Marcos Jr. and Aboitiz Group CEO Sabin Aboitiz leading the ceremony. Sabin Aboitiz expressed the goal of transforming BPIA into a world-class gateway that significantly improves passenger experience and supports local tourism and economic growth.

With this strategic move, Aboitiz InfraCapital is poised to elevate Bohol-Panglao International Airport into a premier regional airport, fostering increased connectivity and economic development in the Visayas and beyond.

Trapped in 47°C Heat: BA Flight Delayed on Tarmac Amid Dubai Scorcher

Published: Sunday, June 01, 2025
Trapped in 47°C Heat: BA Flight Delayed on Tarmac Amid Dubai Scorcher

Passengers on British Airways Flight BA104 from Dubai to London faced extreme discomfort when an air-conditioning fault grounded their Boeing 787-9 Dreamliner amid record-breaking temperatures in Dubai on May 24, 2025.

The aircraft was delayed on the tarmac at Dubai International Airport for approximately two hours due to a failure of the Auxiliary Power Unit (APU), which supplies power to the cabin cooling system while the plane is on the ground.

This malfunction prevented airflow and cooling, leaving passengers trapped in a cabin that reached temperatures as high as 47ºC (116.6ºF).

After boarding, the plane pushed back from the gate and began taxiing but had to stop when a cockpit warning light appeared. With the original gate occupied, the aircraft was diverted to a remote cargo area, prolonging the delay and the oppressive heat inside the cabin.

Passengers described the conditions as unbearable, with some children stripped down to diapers to cope with the heat.

Flight attendants distributed only one cup of water per passenger, citing concerns for their own safety due to the extreme temperatures. One passenger with high blood pressure reported feeling physically and emotionally distressed during the ordeal.

British Airways issued a statement thanking customers for their patience while the technical issue was resolved and confirmed the flight departed for London after repairs were completed.

The airline emphasized that crew members worked hard to maintain passenger comfort during the delay.

The incident coincided with a day of record-breaking heat in the UAE, with temperatures soaring to 47ºC in Dubai and exceeding 50ºC in other areas. The nearby Sweihan region recorded a May record high of 51.6ºC, surpassing the previous day’s record of 50.4ºC.

This event highlights the challenges airlines face operating in extreme heat conditions and raises questions about passenger safety and comfort during technical delays in such environments.