Etihad reports net profit of $14 million
Originally published on www.businesstravellerme.com 09/02/2012 - Filed under: News »
Etihad Airways today reported a full year net profit of $14 million in 2011, comfortably beating the airline's original target to break even.
The accounts, audited by KPMG, showed a 36% jump in revenues to $4.1 billion, up from $2.98 billion in 2010. Earnings before interest, tax, depreciation, amortisation and rentals (EBITDAR) totalled $648 million.
James Hogan, President and CEO, said it was an "historic day" for the eight-year-old airline, but countered that he had to deliver "consistent, sustainable profitability" as it moved into its next phase.
He said the airline's management culture is that of a low-cost airline, adopting a "forensic focus on cost control in every area of the business".
"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," he said.
Highlights of the 2011 results included:
- handling 8.3 million passengers, up 17% on 2010
- an average seat factor of 75.8% (74% in 2010)
- growth of available seat kilometres from 45.2 billion (2010) to 51 billion, up 13%
- the addition of five new routes – Bangalore, the Maldives, the Seychelles, Chengdu and Düsseldorf
- an increase in total aircraft departures, from 57,534 to 62,735
- eight new codeshare agreements, taking its codeshare partners to 35 airlines, which increased its worldwide network to 259 destinations
- The year marked the first full year of Etihad's strategic partnership with Virgin Australia
Hogan said the recent Air Berlin deal will be its 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 $50 million," he said.
"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."
For more information, visit etihad.com
Report by Dominic Ellis
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