Passenger demand boosted Etihad Airways’ 2025 earnings, with the firm reporting its strongest full-year financial and operational performance on record, according to an earnings release. Network expansion and higher yields also boosted earnings, as income after tax for the year rose 47% y-o-y to AED 2.6 bn, while total revenue increased 21% to AED 30.7 bn.

Behind the results: Passenger revenue climbed 24% to AED 25.8 bn, supported by a 21% increase in capacity. Etihad carried 22.4 mn passengers last year, up 21% y-o-y, while cargo revenue rose 8% to AED 4.5 bn, supported by higher volumes and expanded belly-hold capacity. It added 29 new aircraft to its operating fleet, bringing the total to 127.

Etihad is looking to capture more premium demand, even if that means reducing economy class capacity, CEO Antonoaldo Neves told Bloomberg. The carrier plans to increase premium seating and restore first-class cabins across almost its entire wide-body fleet as part of a major retrofit program, he added.

Its ultra-luxury product, The Residence, is also making a comeback, with demand for the three-room suite with a double bed, shower, and living room aboard the Airbus SE A380 leading the airline to bring back two of the jets, Neves said.

HOWEVER- Headwinds remain, especially for its retrofit program, in the form of supply chain disruptions and limited aircraft availability, as manufacturers struggle to meet delivery schedules.

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