MANILA, Philippines - Etihad Airways, the national flag carrier of the United Arab Emirates , is set to impose a $40 increase in the fuel surcharge on international passengers on the back of the rising price of jet fuel in the world market.
The Abu Dhabi-based airline has filed a petition for authority to impose upward adjustment of fuel surcharge on international passenger tickets before the Civil Aeronautics Board (CAB).
Etihad intends to raise the fuel surcharge on passengers bound for UAE and Gulf Cooperation Council (GCC) by 22 percent to $221 per journey from $181 per journey.
The airline also plans to impose a 20 percent increase in fuel surcharge to $241 per journey from $201 per journey for flights to Europe, USA , Mediterranean, Middle East, and Africa regions.
The CAB allows airlines to impose fuel surcharge on international and domestic passengers to help them recover losses arising from the increase in jet fuel prices in the world market.
Latest results of the Jet Fuel Price Monitor of the International Air Transportation Association (IATA) showed that average price of jet fuel is $121.4 per barrel as of March 14 and is nearing the full year target of $124.2 per barrel set by IATA.
Etihad launched its services in the Philippines in February 2006 with four weekly flights using Airbus A330-200.
The airline now flies to Abu Dhabi twice a day or four times a week using a two-class Boeing 777-300 ER.
The net income of Etihad Airways jumped 48 percent to $62 million as revenues increased by 27 percent to $6.1 billion last year.
This marked the third consecutive year of net profitability, in the airline’s 10th year of operation. Passenger volumes rose 36 percent in 2013 compared to 2012 levels, achieving double-digit growth for the fourth consecutive year.
A key driver of Etihad’s growth last year was its partnership strategy, based on wide-ranging codeshares and its unique approach of minority equity investments in strategically important airlines.
This has accelerated network growth, giving it the largest route network of any Middle Eastern carrier, reaching almost 400 destinations; boosted sales and marketing opportunities in key markets around the world; and allowed significant business synergies and cost savings.
This strategy delivered revenues of $820 million in 2013, up 30 percent and represented 21 percent of total passenger revenues for Etihad Airways.
Etihad’s fleet of 88 aircraft operates more than 1,400 flights per week, serving an international network of 84 passenger and cargo destinations in the Middle East, Africa, Europe, Asia, Australia and North America. Etihad Airways also owns nearly 30 percent of airberlin, Europe’s sixth largest carrier and 40 percent of Air Seychelles.
This year, the airline would fly to nine new destinations including Los Angeles and Dallas-Fort Worth in the US, the European gateways of Rome and Zurich, Jaipur in India, Perth in Western Australia, Phuket in Thailand, Medina in Saudi Arabia and Yerevan in Armenia.