Etihad airways reports profitability and EBIT of US$137 million in record 2011

posted on 12/02/2012: 36 views

Etihad Airways, the national carrier of the United Arab Emirates, yesterday reported a full year EBIT of US$137 million, on revenues up 36.0 per cent to US$4.1 billion (2010: US$2.98 billion).

The results included earnings before interest, tax, depreciation, amortisation and rentals (EBITDAR) of US$648 million, with a net profit of US$14 million. The record result exceeded the airline's 2011 target, which was to break even.

James Hogan, President and Chief Executive Officer of Etihad Airways, said: "This is an historic day for Etihad Airways and an amazing achievement for an airline just eight years old. "Five years ago we said we would be profitable by 2011. Despite the global financial crisis, continued high oil prices, regional instability and natural disasters, we have delivered.

"And we will aim for strong growth again in 2012, in spite of the tough global economic environment, with a passenger traffic target of 10 million and a corresponding increase in profits," Hogan added.

CEO of the airliner said Etihad Airways' successful partnership strategy intensified, with its first equity investment in another carrier - airberlin, Europe's sixth largest airline, which was announced in December 2011. "This was a game changing move for Etihad Airways, adding 157 destinations and giving us access to 35 million new passengers.

"The airberlin deal will be our most important catalyst for growth in 2012. It has given us instant access to Europe's largest travel market, and will have a major impact on revenues in 2012, with an expected contribution of up to US$50 million.

"And of course, 2011 marked the first full year of Etihad Airways' strategic partnership with Virgin Australia, which offers 45 destinations in Australia and the Pacific, and boosted revenue by 700 per cent over what we achieved with our previous Australian airline partner.

"We will continue to look at opportunities in 2012. Already this year we have announced a second equity investment, in Air Seychelles, which is an important step towards growing our operations in the increasingly popular leisure markets of the Indian Ocean and Africa." Hogan said cost control had been a significant contributor to the airline's profit, with costs per available seat kilometre (CASK), excluding fuel, being cut by 4.6 per cent in 2011 and 16.6 per cent over the last two years, representing annual savings of more than US$187 million.

The airline also continued its policy of fuel hedging, which has protected the airline from the volatility of oil prices. More than 80 per cent of fuel costs were hedged in 2011, while the figure for 2012 is currently 75 per cent.

At the end of 2011, the company had 9,038 employees, up 15.1 per cent on 2010 (7,855), with more than 120 nationalities represented. Etihad Airways' successful Emiratisation scheme continued, with Emiratis now making up 18 per cent of the headquarters workforce.

Etihad Airways ordered 100 new aircraft and 105 options and purchase rights at the 2008 Farnborough Air Show. This gives flexibility in its network growth, enabling it to meet passenger demand over the next 10 years. To date, Etihad Airways has raised US$5 billion in external fleet financing, through a portfolio of 41 different financial institutions. Etihad Airways' accounts are audited by KPMG. - Emirates News Agency, WAM

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