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16 April 2024

Etihad’s net profits take off with 200% jump to Dh154m

By Staff

Etihad Airways has recorded a net profit of $42 million (Dh154.2m approx) for the 2012 financial year, with a year-on-year surge of 200 per cent from 2011’s $14m.

The Abu Dhabi-based carrier also recorded a 17 per cent jump in revenue over 2011, with figures recording $4.8bn (Dh17.6bn) or a $0.7bn (Dh2.57bn) spike over the previous year.

Passenger numbers also spiked 23 per cent, hitting 10.3m.

The airline attributes this increase to its equity partnerships and codeshares, which delivered more than $600m (Dh2.2bn) in total revenue for Etihad.

James Hogan, President and CEO of Etihad Airways, said: “This has been a game-changing year for the airline.

“We have delivered improved net profit, the second consecutive year we have been in the black, a remarkable achievement given the youth, ambitious growth and on-going investment made by this airline in a challenging global economic environment.”

Speaking about Etihad’s increasing bouquet of alliances, Hogan said: “We have taken great strides in building the industry’s first equity alliance, with our investments in airberlin, Air Seychelles, Virgin Australia and Aer Lingus contributing significant value to our business.”

Earnings before interest and tax (EBIT) rose 24 per cent year-on-year to $170m (Dh624.4m), while EBITDAR (earnings before interest, tax, depreciation, amortisation and rentals) rose to $753m (Dh2.76bn), a margin of 16 per cent on total revenue.

The carrier’s current turnover is approximately $5b (Dh18.36bn) annually.

Hogan also revealed that more than 50 institutions have now provided more than $6.8bn (Dh24.9bn) in cumulative funding for the airline’s on-going expansion.

Passenger numbers

During the year, growth in revenue passenger kilometres (RPKs) outpaced growth in available seat kilometres (ASKs) for the fourth year running for the carrier.

RPKs were up 23 per cent or 9bn to record 48bn in 2012, while ASKs up 20 per cent to 61bn, resulting in a lift in seat factor of 2.4 points to 78.2 per cent.

Equity and codeshare partners delivered more than 1.2m passengers onto the Etihad Airways network.

airberlin, in which Etihad Airways holds a 29.21 per cent stake, made a strong contribution, with more than 300,000 passengers shared between their networks, delivering more than $130m (Dh477.4m) in total to the two airlines.

Airline officials also confirmed the Etihad has hedged 80 per cent of fuel costs during 2012, the same level as in 2011.

Careful cost management in all other areas of the business saw non-fuel costs per available seat kilometre reduced by five per cent.

Increase in operations

The airline currently flies to 86 passenger and cargo destinations, and 248 codeshare destinations.

Etihad has also announced new flights to Washington, Amsterdam, Sao Paolo and Ho Chi Minh City for 2013.

CEO Hogan said cargo continued to play an important part in Etihad’s success by delivering tonnage growth of 19 per cent on the back of a capacity increase of 14 per cent in available tonnage kilometres.

“Etihad Cargo is continuing to outperform the market,” Hogan said. “We are building strong momentum in international growth markets and through focused customer and product segmentation.”

Planned fleet upgrades for 2013 include 14 aircraft, with 11 passenger aircraft deliveries and three freighter deliveries.

The orders are for nine wide-bodied aircraft and five narrow bodies, taking its fleet to 70.