Etihad Airways, the flag carrier of the United Arab Emirates, has experienced exceptional growth across its network, with passenger numbers rising by more than 30% in the past year.

The airline’s operational performance remains robust, particularly in its widebody fleet, which has become one of the most profitable in the Middle East, as indicated by recent Q3 2024 data from AvBench.

Etihad’s Short-Haul Network Performance
Etihad’s short-haul network, covering routes under 1,500 nautical miles, now serves over 6 million passengers annually, marking a 32% increase from the previous year.

Although these routes account for just 12% of Etihad’s total Available Seat Kilometers (ASK), they generate approximately $500 million in annual ticket revenue.

The India-UAE corridor is Etihad’s leading short-haul market, representing 53% of its short-haul ASK deployment. Other significant markets include UAE-Saudi Arabia (13%), UAE-Pakistan (11%), UAE-Egypt (9%), and UAE-Jordan (3%).

Top Short-Haul Routes
An analysis of Etihad’s short-haul routes highlights the Abu Dhabi–Delhi route as its strongest performer. This route has seen significant growth, with segment traffic increasing by 194,000 passengers, while maintaining an 85% market share. The route boasts a Market Outlook & Expansion Index (MOXI) score of 7.9, showcasing its strong position within Etihad’s network.

Etihad Airways’ top-performing short-haul routes include Abu Dhabi-Mumbai (MOXI: 7.4), Abu Dhabi-Cairo (MOXI: 6.8), Abu Dhabi-Jeddah (MOXI: 6.8), and Abu Dhabi-Karachi (MOXI: 6.8).

The airline has secured 100% market share on its Abu Dhabi-Karachi route, showcasing its dominance in select markets.

However, some routes face challenges, such as the Abu Dhabi-Beirut route, which has a low MOXI score of 2.9, reflecting a decline in both point-to-point and segment passengers. The Abu Dhabi-Hyderabad (MOXI: 3.7) and Abu Dhabi-Lahore (MOXI: 3.8) routes are also showing signs of underperformance.

Fleet Composition and Opportunities
Etihad’s top short-haul routes are served by three aircraft types: the A320 (14 aircraft, average age 12.9 years), A321 (9 aircraft, average age 9.5 years), and A321neo (6 aircraft with 20 more on order, average age 5.3 years).

Despite increased competition from airlines such as Air Arabia, IndiGo, and Wizz Air Abu Dhabi, Etihad’s aging A320s continue to perform well, with a Commercial & Operational Fit Index (COFI) score of 5.5. The A321s, performing better due to their deployment on longer routes, have a COFI score of 7.7, which helps reduce operating costs.

The A321neo fleet, while currently operating on relatively short routes, has significant potential, with a COFI score of 9.9. These aircraft will play a critical role in maintaining market share on short-haul routes while ensuring profitability, similar to the strategy used by flydubai with their Boeing MAX aircraft.

Medium/Long-Haul Network Performance
Etihad’s medium and long-haul network, covering routes beyond 1,500 nautical miles, serves over 11.5 million passengers annually, reflecting a solid 35% growth from the previous year.

Top medium and long-haul routes generate about $3 billion in ticket revenue, accounting for 88% of total Available Seat Kilometers (ASK) deployment.

The Middle East-Europe corridor leads Etihad’s long-haul operations, comprising 37% of ASK, followed by Middle East-Asia (34%), Middle East-North America (19%), Middle East-Oceania (7%), and Middle East-Africa (2%).

In these markets, Etihad typically ranks as the third or fourth largest carrier, competing primarily with Emirates, Qatar Airways, and Turkish Airlines.

Etihad’s Busiest 30 Medium/Long-Haul Routes
The Abu Dhabi-Phuket route has emerged as Etihad’s strongest long-haul performer, with a MOXI score of 7.2, having gained 214,000 segment passengers.

Other top-performing routes include Abu Dhabi-Bangkok (MOXI: 7.1), Abu Dhabi-Jakarta (MOXI: 6.9), Abu Dhabi-London (MOXI: 6.5), and Abu Dhabi-Kuala Lumpur (MOXI: 6.5).

The data reveals that Etihad maintains 100% market share on most of its long-haul routes, with exceptions including Abu Dhabi-Paris (56% share, down 44%) and Abu Dhabi-Rome (66% share, down 4%).

Abu Dhabi-Paris stands out as an underperforming route with a MOXI score of 4.2, reflecting stagnant point-to-point traffic despite an increase in segment traffic.

The Abu Dhabi-London route is Etihad’s busiest long-haul route by Available Seat Kilometers (ASK), carrying 950,000 segment passengers (up 244,000) while maintaining a dominant 95% market share.

Fleet Composition and Opportunities
Etihad’s long-haul operations are supported by five aircraft types: Boeing 787-9 (33 aircraft with 8 on order), Boeing 787-10 (10 aircraft with 20 on order), Airbus A350-1000 (5 aircraft with 15 on order), Airbus A380-800 (10 aircraft), and Boeing 777-300ER (9 aircraft).

The A380 fleet, which was widely expected to be retired following the COVID crisis, now delivers the strongest performance with a Commercial & Operational Fit Index (COFI) score of 8.6.

Other widebody aircraft also perform well, with the 787-10 and A350-1000 both earning a COFI score of 6.7. The 787-9 scores 6.0, and the aging 777-300ER scores 5.8.

A key challenge for Etihad’s widebody fleet is its occasional deployment on routes that are too short (particularly to India), where it competes with narrowbody aircraft offering better economic performance. The anticipated delivery of 20 A321neos may help address this inefficiency. Moreover, there is potential for Etihad to enhance aircraft utilization when compared to regional competitors.

Methodology & Data Sources
The report utilizes two primary analytical frameworks: the Market Outlook & eXpansion Index (MOXI) and the Commercial & Operational Fit Index (COFI).

MOXI evaluates growth and competitive dynamics on specific routes, considering factors such as passenger volume evolution and market share. For current routes, it assesses traffic gains and market share trends; for future opportunities, it looks at short-term capturable point-to-point volume and long-term connecting passenger potential.

COFI evaluates the overall commercial and operational performance of a sub-fleet, considering factors such as passenger market share performance, revenue market share, network aggressiveness, yield performance, cost per seat, aircraft utilization, and network maturity.

Data sources include Milanamos (traffic, revenue, and schedule data) and ch-aviation (fleet data), encompassing 1.5 billion origin and destination records, 2.4 billion flight segment records, and extensive schedule data from multiple global aviation sources.

The post Etihad Airways Soars with Thirty Percent Growth, Dominating Key Short-Haul and Long-Haul Routes Across Global Network appeared first on Travel And Tour World.