Etihad Airways posts 200% rise in 2012 net profit

The number of passengers grew a healthy 23% to 10.3 mn compared to 8.4 mn in 2011

I / Abu Dhabi  Feb 04, 2013,  16:14 IST

Etihad Airways, the fast-growing carrier of Abu Dhabi, posted a 200% rise in net profit in 2012 and a 17% increase in revenues, the airlines said in a statement today.

Etihad posted a net income of $42 million last year compared to $14 million in 2011 when it made its first ever profit, said the statement which attributed the rise to strong improvements in revenues, passengers and cost control.

The flag carrier of the Emirati capital Abu Dhabi said revenues increased to $4.8 billion in 2012 compared to $4.1 billion the previous year.

The number of passengers grew a healthy 23% to 10.3 million compared to 8.4 million in 2011, significantly boosted by Etihad's partnerships which delivered more than $600 million in total revenue.     

"This has been a game-changing year for Etihad Airways," James Hogan, the airline's president and chief executive officer said.

"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 ongoing investment made by this airline in a challenging global economic environment," he said in the statement.

Etihad said it succeeded in building the first "equity alliance" with investments of 40% in Air Seychelles, 29.2 percent in Air Berlin, 9.0% in Virgin Australia and about 3% in Air Lingus.

"We have taken great strides in building the industry's first equity alliance ... Which (is) contributing significant value to our business," Hogan said.

 

Earnings before interest and tax (EBIT) rose 24% to $170 million, while EBITDAR (earnings before interest, tax, depreciation, amortisation and rentals) rose to $753 million, up 16%, Etihad said.

Hogan said more than 50 institutions have provided around $6.8 billion in cumulative funding for the airline's ongoing expansion.

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

The orders are for nine wide-bodied Boeing and Airbus aircraft and five narrow-body Airbus aircraft. These will meet Etihad Airways' immediate growth requirements.

At the end of 2012, the company had 10,656 employees, 18% more than in 2011, representing more than 125 nationalities.

Etihad Airways, which began operations in 2003, serves 86 passenger and cargo destinations in the West Asia, Africa, Europe, Asia, Australia and the Americas.