Etihad Airways 'cautiously optimistic' on 2022 outlook, chief executive says

Abu Dhabi airline's first-quarter earnings before interest, taxes, depreciation and amortisation rose to a record of $272m

Visitors at the Dubai stand on the third day of the Arabian Travel Market held at Dubai World Trade Centre. Pawan Singh / The National

Visitors at the Etihad stand. Pawan Singh / The National

A Flynas advertisement on the first day of Arabian Travel Market.

The Iraq stand. Pawan Singh / The National

Visitors at the Qatar stand on the first day of Arabian Travel Market.

Visitors at the Rotana stand. Pawan Singh / The National

Children's toys on display at the Emirates stand. Pawan Singh / The National

The Neom stand. Pawan Singh / The National

The Armani stand. Pawan Singh / The National

The Flynas stand. Pawan Singh / The National

Performers dance at the Saudi Arabia stand on the second day of the Arabian Travel Market. Pawan Singh / The National

Visitors take photos at the flydubai stand. Pawan Singh / The National

The Jordan stand. Pawan Singh / The National

The second day of Arabian Travel Market welcomed visitors from around the world. Pawan Singh / The National

The event is considered a bellwether for the travel industry in the Middle East, offering an insight into the trends that will shape the year ahead. Pawan Singh / The National

A total of 112 countries looking to revive their tourism numbers will be featured on the exhibition's show floor, from Japan to Jamaica and South Africa to Italy. Pawan Singh / The National

People visit the South Africa stand at the Arabian Travel Market. Pawan Singh / The National

A model of the Airbus A350-1000 at the Etihad stand on the first day of Arabian Travel Market held at Dubai World Trade Centre. All photos: Pawan Singh/The National

More than 1,500 exhibiting companies are taking part in the four-day tourism showcase that will welcome about 20,000 visitors.

Travel and tourism are starting to show signs of recovery from the impact of the coronavirus pandemic, with many companies starting to ramp up their recruitment as countries reopen their borders.

Staff from Al Ain Zoo showing some birds and reptiles at the Abu Dhabi stand.

Saudi Arabia has a major presence at this year's Arabian Travel Market, including representatives from Neom, the kingdom's $500 billion futuristic mega city.

Arabian Travel Market is considered a bellwether for the travel industry in the Middle East, offering an insight into trends for the year ahead.

Emirates airline launched its premium economy cabin at Arabian Travel Market.

The Abu Dhabi stand at Arabian Travel Market was busy on the first day of the event.

Artists showcasing handmade items at the Abu Dhabi stand.

Staff from Al Ain Zoo introduce visitors to birds at the Abu Dhabi stand.

Etihad Airways showcasing its economy class seats at Arabian Travel Market.

The soaring price of oil and the impact of the war in Ukraine are tempering the travel industry's expected resurgence.

Staff from Al Ain Zoo show visitors reptiles at the Abu Dhabi stand.

The Darina holidays stand on the first day of Arabian Travel Market held at Dubai World Trade Centre in Dubai.

Visitors at the Brussels stand.

Visitors at the Maldives stand.

Etihad Airways is “cautiously optimistic” about the travel outlook for 2022 despite strong passenger demand and steady cargo rates as the aviation industry recovers from the coronavirus-induced slowdown.

The Abu Dhabi-based airline's earnings before interest, taxes, depreciation, and amortisation stood at $272 million in the first quarter, with yields on passenger fares “reasonably good”, Tony Douglas, chief executive of Etihad Aviation Group, said at the Arabian Travel Market fair in Dubai on Tuesday.

Premium cabin load factors are currently higher than they were before the pandemic, he said. The load factor is a measure of how well an airline is filling available seats.

“We are very cautiously optimistic because all the cargo rates maintain themselves,” Mr Douglas said. “There is a lot of demand out there, which is the second reason I am cautiously optimistic as we go through the year. It is a big part of the recovery that we all need.”

With Covid-related travel restrictions easing worldwide, pent-up air travel demand is finally being unleashed, according to the International Air Transport Association (Iata).

Total traffic in March 2022 — measured in revenue passenger kilometres, or RPKs — was up 76 per cent, compared with March 2021, Iata said in its monthly report.

Although that was lower than the 115.9 per cent rise in annual demand in February, “volumes in March were the closest to 2019 pre-pandemic levels, at 41 per cent below”, it said.

“We are not getting carried away; quite the opposite,” Mr Douglas said.

“It is a sustainable work in progress but what we have seen is the market has come back like a fire hydrant. Yields are still reasonably good … we have been, for the first four months of the year, almost back to 2019 levels.”

Etihad's premium cabin load factors have now exceeded pre-pandemic levels, he said.

“People are quite keen to trade up to more space,” said Mr Douglas. “We have seen a significant upturn in premium.”

About 45 per cent of Etihad's Business and First class cabins were filled with leisure travellers before the pandemic but that percentage has now increased.

Etihad's joint venture with Sharjah-based budget airline Air Arabia Abu Dhabi has been profitable in its first year of operation, he said. It competes with Hungarian Wizz Air's joint venture with local holding company ADQ.

There is room for a third and fourth airline to be based out of the UAE capital, as markets such as Africa are still underserved and represent an opportunity to expand further, Mr Douglas said.