Etihad Airways yesterday said all funding for its expansion, including aircraft orders, are already covered and ruled out any revision in its revenue projection of $3.1 billion (Dh11.3bn) this year despite the market slump.
Roy Kinnear, Revenue Management Vice-President, told the 13th Air Transport Research Society (ATRS) World Conference in the capital, that the airline will carry seven million passengers and fly to 60 destinations by the end of the year.
Etihad Airways' total revenues for 2008 was $2.5bn after carrying six million passengers and flying to 47 destinations. Currently the airline flies to 56 destinations.
Kinnear said the projection will not be revised because of continued passenger growth and expansion of its global network, "which are the driving forces for Etihad's growth and revenue generation".
The airline's projection for 2020 is a fleet of 152 aircraft flying 25 million passengers a year with up to 100 destinations and having 27,000 employees.
When asked about financing expansion plans and aircraft orders, he told Emirates Business: "We have already covered that. The Abu Dhabi capitalisation plan has covered that with Etihad."
However, Kinnear did not go into details saying it was not his jurisdiction.
Referring to last year's growth, he said Etihad flew six million passengers at 75 per cent capacity.
Kinnear said: "On the passenger side the revenue was $2bn last year (63 per cent revenue growth).
"I expect passenger revenues to increase by 25 per cent this year over 2008. We are operating at 75 per cent capacity. So passenger sales have not plummeted. Yes, there are changes in the industry and changes in trends as businesses tighten belts as a result of the slowdown."
He added there were pressures on sales and on the premium classes, particularly the first class.
"However, our business-class loads on traffic flows between the UAE and Europe are actually stronger than they were last year. We operate many European routes in excess of 60 and 70 per cent capacity," he said.
Etihad Airways took delivery of nine aircraft last year and 11 more are in the process of being delivered this year, taking fleet strength to 49. "From 2012 to 2017, the airline will receive 100 aircraft that are all firm orders. We also have 150 options for the same period."
About yield growth in 2009, Kinnear said: "Last year there was a 19 per cent increase in yield with 31 per cent increase in capacity. When you take all segments together, they are not necessarily expected to grow this year. Yes, yields are under pressure. It depends on which geographical part of the world we are flying to. Yield increases in some sectors. On some routes we will get double-digit yield growth and some sectors we won't."
About breaking even, Kinnear said: "There has never been a statement saying that we will break even this year. The three-year plan clearly says we will be a break-even in 2010. Nothing has changed."
About the losses in the global aviation industry as a result of the global economic slowdown, Kinnear said: "The losses in 2008 are predicted to be $5bn. The aviation industry was at the forefront of recession due to reduction in leisure travel and holidays as well as cutback in business travel and oil prices."
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