Etihad Airways tops 2011 income target

MANILA, Philippines - Etihad Airways, the national carrier of the United Arab Emirates, has reported a full year earnings before interest tax of $137 million, on revenues up 36.0 percent to $4.1 billion (2010: $2.98 billion).

The results included earnings before interest, tax, depreciation, amortization and rentals (EBITDAR) of $648 million, with a net profit of $14 million. The record result exceeded the airline’s 2011 target, which was to break even.

James Hogan, president and chief executive officer of Etihad Airways, said: “This is an historic day for Etihad Airways and an amazing achievement for an airline just eight years old. Five years ago we said we would be profitable by 2011. Despite the global financial crisis, continued high oil prices, regional instability and natural disasters, we have delivered. The mandate from our shareholder was to create an airline that is best in class, operates to the highest safety standards, and makes money – and we have achieved this mandate.

Hogan said, “given the challenges faced by the industry, our combination of revenue growth and entry into profitability must be one of the best results of any airline in 2011. And we will aim for strong growth again in 2012, in spite of the tough global economic environment, with a passenger traffic target of 10 million and a corresponding increase in profits.”

Highlights of the 2011 result included:

•8.3 million passengers, up 17 percent;

•Average seat factor of 75.8 percent, nearly two percentage points higher than 2010;

•Growth of available seat kilometers from 45.2 billion (2010) to 51 billion, up 13 percent;

•Addition of five new routes – Bangalore, the Maldives, the Seychelles, Chengdu and Düsseldorf;

•Etihad Crystal Cargo revenues up 25.7 percent to $651 million on tonnage up 17.8 percent to 310,188 tons;

•Increase in total aircraft departures, from 57,534 to 62,735, with a technical dispatch reliability of 99 percent; and

•Eight new codeshare agreements, taking Etihad Airways’ codeshare partners to 35 airlines, which increased its worldwide network to 259 destinations – more than any other Middle East air carrier.