Abu Dhabi's Etihad Airways said its revenues grew by 28 per cent to $1.72 billion in the first half of the year, as the unlisted carrier looks to break even in 2011.
Etihad, which began operations in 2003, said in a statement on Wednesday that it saw a 2 per cent reduction in cost per available seat kilometre despite soaring oil prices.
Seat factor - the percentage of available seats that are filled during a specific period - increased to 72.9 per cent from 72.5 per cent seen in the first half of 2010, while passenger numbers rose 14 per cent to 3.8 million, James Hogan, chief executive of Etihad said in the statement.
Etihad's statement did not specify a profit or loss figure for the period.
The airline, which competes with other big regional carriers like Qatar Airways and Emirates, said it looks to break even by the end of the year and see sustainable profits in 2012.
Revenues from Etihad's cargo operations were up by 32 per cent in the first half, helped by improvement in tonnage and yields, the airline said in the statement.
Unrest in the Middle East have impacted regional carriers with Emirates saying its revenue could be hit by 3 to 5 per cent.
Etihad announced a naming rights deal with Manchester City last week, which saw the City of Manchester Stadium immediately renamed as the Etihad Stadium.
The deal was reportedly worth 150 million pounds ($241 million) spread over 10 years.
The airline got delivery of three Airbus A330-300s and two Boeing B777-300ERs this year. It has a fleet of 57 Airbus and Boeing aircraft, and 100 aircraft on order, including 10 Airbus A380s.