Etihad Airways turns profitable after eight years
Airline earned its first profit in 2011 with a net $14m despite global fiscal turmoil
Dubai: After eight years since it was founded, Etihad Airways earned its first profit in 2011 with a net $14 million (Dh51.4 million) for the full year.
The Abu Dhabi-based airline said yesterday it achieved $4.1 billion in revenues last year, a 36 per cent increase over $2.98 billion earned in 2010.
"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," said James Hogan, President and CEO.
The carrier also said it flew 8.3 million passengers last year, up 17 per cent over the year before, and is aiming to carry 10 million in 2012.
"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," said Hogan.
He added that the airline is targeting $5 billion in revenues this year despite the tough global economic environment.'
Etihad's strongest markets in 2011 included Australia, Southeast Asia and the Americas, according to Hogan, who further said that China is starting to grow.
The carrier added five new routes last year to its global network in addition to signing eight new codeshare agreements, taking Etihad Airways' codeshare partners to 35 airlines, thus increasing its worldwide network to 269 destinations.
Seven new planes are expected to join Etihad's current fleet of 64 aircraft and to fund deliveries of these, the carrier will consider Islamic structures among other financing options, according to its CFO, James Rigney.
The record results, audited by global accounting firm KPMG, included earnings before interest, tax, depreciation, amortisation and rentals (EBITDAR) of $648 million.
They exceeded the airline's 2011 target for breaking even, Etihad stated.
