Etihad Airways will report its first-ever profitable first quarter this year despite corporate travel remaining “hugely suppressed”.
Tony Douglas, CEO of the Abu Dhabi-based carrier, said the improved results included a "$1 billion ebitda (earnings before interest, taxes, depreciation and amortisation) turnaround and $1.25 billion turnaround on core operating profit”.
“It puts us in a far better mood now than we were at this time last year," said Douglas at last week’s CAPA Airline Leader Summit in Manchester.
The carrier's momentum built in the second half of 2021, particularly in the fourth quarter, and carried on into 2022, with Douglas adding that load factors in March 2022 were higher than March 2019.
"That's not to suggest we are back to 2019 - we most certainly are not, but it's a big signal for us that we are seeing signs of a recovery," he stressed.
Corporate travel, however, remains "hugely suppressed," said Douglas, who added that some corporations were starting to "come back in and operate in a way in which we are familiar with pre-pandemic, [although] many still from a policy point are avoiding it".
What Etihad has seen take off is a “sizeable increase” in demand for its business class cabin, but not from corporate travellers.
Douglas said leisure travellers booking premium cabins "may prove to be a trend", which could make it more difficult for returning corporate travellers to find premium seats.
"It's something that may or may not occur as business travel comes back. [Leisure customers] may have gotten [their pent-up travel] out of their system. But as the corporate travel market opens back up, they'll have exciting new options to choose from," added Douglas.
Douglas was referring to the new business and economy classes onboard Etihad’s Airbus A350-1000 aircraft, which the carrier put into operation on 31 March.
The aircraft's business class cabin offers 44 studios with sliding doors for privacy. Each seat has direct aisle access and converts into a fully 79-inch lie-flat bed.
The company will receive four more A350s this year and has orders and options that can bring that total up to 20 aircraft.