UAE's Etihad Airways will not be hiring non-operational staff 'until the end of year', said a report citing the airline's president and CEO James Hogan.

The hiring freeze, which was introduced in the first quarter, was in reponse tight profit margins on airfares across the whole of the aviation industry, said a report in The National.

Speaking to reporters ahead of the International Air Transport Association (IATA) annual conference in Dublin, Hogan said that the group will not be laying off any of its 27,000 staff, who also will not be replaced if they resign. The carrier will continue to employ cabin crew, pilots and engineers but will put a freeze on the employment of non-operational employees.

The move will help the group focus more on costs this year to boost profit margins as a softening in air travel demand puts pressure on airfares and yields.

A series of terror attacks in Europe, Turkey and North Africa has caused global air travel demand to weaken, rising only a mere 1.8 per cent in April - a steep drop from 6 per cent recorded in March, the report said.

Furthermore, airlines around the world are bearing the brunt of currency fluctuations, a slowdown in the global economy and political uncertainties around the Brexit vote this month.

Nevertheless, Etihad still expects to meet its targets, as the airline anticipates carrying 19 million passengers this year, up from 17.6 million last year, it said.

"India has been strong for us South Asia has been strong for us,” Hogan said.