Etihad posts third straight annual profit

TD Guest Writer

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Etihad expanded its fleet to 89 aircraft in 2013
Etihad expanded its fleet to 89 aircraft in 2013

Etihad Airways has posted its third straight profitable year.

The Abu Dhabi-based carrier generated net profits of US$62 million in 2013, 48% higher than the US$42m profit it made in 2012. This was driven by a 27% surge in revenues, to US$6.1 billion, as passenger numbers climbed 12% to 11.5m. Etihad also added 19 new aircraft in 2013, expanding its fleet to 89 jets and boosting seat capacity by 16%. The airline’s average cabin load factors were unchanged at 78%.

“This is another important step forward in our journey as a growing, commercially successful business. We have hit every financial target for each of the last seven years, bringing sustainable profitability to a business which has grown from just US$300m in revenues in 2005 to more than US$6bn today,” said Etihad’s president & CEO, James Hogan.

Etihad added six new destinations in 2013 – Washington DC, Amsterdam, Sao Paulo, Belgrade, Ho Chi Minh City and Sana’a – and increased capacity on 18 existing routes.

The company also continued its strategy of investing in other airlines, by taking stakes in Air Serbia, Jet Airways and Darwin Airline. The latter has now been rebranded as Etihad Regional, giving the Middle Eastern carrier a branded presence in the European market. It also increased its stake in Virgin Australia from 9% to 19.9%.

And Etihad said this strategy is already paying dividends, with partnership revenues rising 30% to US$820m last year, representing 21% of passenger revenues.

For 2014, Etihad expects to add 18 new aircraft to its fleet, including its first Boeing 787-9 Dreamliners and Airbus A380s. New destinations being launched this year will include Los Angeles, Dallas, Rome, Zurich, Jaipur, Perth, Phuket, Medina and Yerevan.

Klook.com

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