Etihad revenues jump 28% to Dh11.75bn in H1 2014

Etihad Airways has reported double-digit growth in passenger and cargo volumes during the first half of 2014, marking its strongest ever performance for the six-month period, with total revenues increasing to Dh11.75 billion ($3.2bn).

A total of 6.7 million passengers travelled with the airline between January and June this year, almost 22 per cent higher than the 5.5 million passengers in the same period last year.

Etihad Cargo carried 268,713 tonnes of freight and mail during the first half of 2014, up 25 per cent year-on-year, and contributing “significantly to the airline’s total revenue,” the carrier said in a statement, adding: “It remains on track to become a billion dollar business in 2014.”

The performance was supported by Etihad’s growth in Q2 2014, with 3.5m passengers and 140,892 tonnes of freight and mail carried over the three-month period, both up by 25 per cent on the same period last year.

James Hogan, President and Chief Executive Officer of Etihad Airways, said: “At a time when the global airline industry has struggled with high fuel prices, intense competition and a slowdown in the cargo market, Etihad Airways has achieved record success, carrying more passengers and cargo to more destinations around the world, with our biggest fleet to date.

“We have ambitious plans to build on this momentum in the second half of 2014, with five more destinations being introduced into our global network, and our ground-breaking Airbus A380 and Boeing 787 also entering service, which will reinforce our status as a global market leader.”

Passenger and cargo volumes were boosted with 98 destinations operational by the end of H1 2014, compared to 92 in the same period last year.

Following the launch of Medina flights in the first quarter of 2014, the second quarter included the start of new services to Jaipur, Zurich and Los Angeles, while frequencies increased on five existing routes, including Moscow and Cochin.

The airline’s network will increase to 103 destinations by year end, with Yerevan flights launched this month and Rome, Perth, Phuket and Dallas to follow over the remainder of 2014.

Organic growth was supported by codeshare and equity alliance partnerships in H1 2014, delivering an estimated 1.4m passengers onto Etihad flights (+28 per cent year-on-year) and contributing revenue of Dh1.72bn ($471m), which represented 23 per cent of the airline’s passenger revenue.

In Q2 of the year, a new codeshare agreement was signed with GOL and existing codeshares were expanded with partners Jet Airways, airberlin, Air Serbia, Air France and South African Airways, while 754,050 passengers were delivered onto Etihad flights (+32 per cent year-on-year), contributing revenue of Dh907m ($247m).

Etihad’s passenger carrying capacity, measured in Available Seat Kilometres (ASK), was 39.4bn by the end of H1 2014, an increase of 19 per cent year-on-year.

The airline’s fleet also expanded to 102 aircraft, with seven aircraft delivered in the second quarter.

An additional six aircraft will be received in the second half of 2014, including Etihad’s first Airbus A380 and Boeing 787, which commence operations in December and will feature brand new first, business and economy class products.

The A380 will also include The Residence by Etihad, the world’s first three-room private cabin, with a living room, separate double bedroom and en suite shower, together with a personal butler service.

Etihad Cargo’s Q2 included the launch of weekly freighter services to Dar es Salaam and Entebbe, increased frequencies on existing freighter routes to Beijing, Almaty and Bangalore, and more belly-hold capacity to Munich, New York and Chengdu.

Demand was also boosted by a new global incentive that awards Etihad Guest Miles for the booking of personal cargo shipments, which can be redeemed for flights and other rewards; a Partner Elite programme was also launched in the second quarter to recognise Etihad Cargo’s larger key multinational customers.

Etihads’ workforce grew to 20,149 employees by the end of the first half, up 28 per cent year-on-year.

Within the core airline, 1,628 employees are UAE nationals, 19 per cent more than the same period in 2013, and Emiratis are the number one nationality group at manager level.

Etihad signs codeshare with Brazilian airline

Etihad Airways in partnership with Brazil’s Gol Linhas Aéreas Inteligentes is now offering travellers greater access to South America, following the implementation of a codeshare partnership agreement.

Subject to regulatory approval, the codeshare agreement will allow Etihad Airways to place its EY code on Gol-operated flights across the Brazilian airline’s extensive domestic network, as well as to other destinations in South America.

The agreement provides for increased co-operation between the airlines’ frequent flyer programs, Etihad Guest and Gol’s Smiles programs, enabling passengers to earn and redeem miles when flying with the partner airline. The partnership will also enable passengers to check-in their luggage to their final destination.

Kevin Knight, Chief Strategy and Planning Officer at Etihad Airways, said: “Brazil is a growing market for Etihad Airways and we are delighted that the partnership with Gol Linhas Aéreas Inteligentes greatly expands our business and leisure travel offering, between the UAE and South America’s largest market.”




 

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