Etihad Airways' net profit jumps 200% to $42 million

Etihad Airways' has released its financial report of 2012.

· Second year of net profit sees leap of 200% from US$14 million in 2011 to US$42 million in 2012

· Success in building the first ‘equity alliance’, with investments in Air Seychelles (40%), airberlin (29.21%), Virgin Australia (9%) and Aer Lingus (2.987%)

· Boost in revenue from US$4.1 to US$4.8 billion, with partner airlines contributing 19% of passenger revenue

· 16% rise in EBITDAR (earnings before interest, tax, depreciation, amortisation and rentals) of US$753 million (US$648 million)

· Five per cent reduction in non-fuel costs per available seat kilometre

· Passenger numbers break 10 million for the first time

· Record seat factor of 78.2%, a significant jump of 2.4 percentage points

· Revenue passenger kilometres up 23% to 48 billion, continuing to grow ahead of available seat kilometres

· Crowned the World's Leading Airline for the fourth consecutive year by the World Travel Awards

· Fleet increased by six to 70 aircraft, enabling access to 86 Etihad Airways passenger and cargo destinations, and 248 codeshare destinations

· Cargo tonnage showed strong growth of 19 per cent to 367,837 tonnes

Key Indicators*

2012

2011

Variance

Revenue (US$ billion)

4.8

4.1

17%

Net profit (US$ million)

42

14

200%

EBIT (US$ million)

170

137

24%

EBITDAR (US$ million)

753

648

16%

Passengers (million)

10.3

8.4

23%

Revenue passenger kilometres (billion)

48

39

23%

Available seat kilometres (billion)

61

51

20%

Seat factor

78.2%

75.8%

2.4 pts

Number of aircraft

70

64

6 aircraft

Number of employees

10,656

9,038

18%

Cargo tonnage (tonnes)

367,837

310,188

19%

Codeshare partners

41

29

12

Etihad Airways, the national carrier of the United Arab Emirates, today reported net profit of US$42 million in 2012, up 200 per cent on 2011 (US$14 million) in a year which saw strong improvements in revenues, passengers numbers and cost control.

Revenue increased 17% to US$4.8 billion (US$4.1 billion), on passenger numbers up 23% to 10.3 million (8.4 million). These numbers were boosted significantly by Etihad Airways' equity partnerships and codeshares, which delivered more than US$600 million in total revenue.

James Hogan, president and chief executive officer of Etihad Airways, said: “This has been a game-changing year for Etihad Airways.

“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.

“We have taken great strides in building the industry's first 'equity alliance', with our investments in airberlin, Air Seychelles, Virgin Australia and Aer Lingus, which are contributing significant value to our business.

“And we have met our mandate of contributing to the economic development of Abu Dhabi, growing its aviation sector and building trade and tourism connections across the globe.”

Earnings before interest and tax (EBIT) rose 24% to US$170 million (US$137 million), while EBITDAR (earnings before interest, tax, depreciation, amortisation and rentals) rose to US$753 million (US$648 million), a margin of 16% on total revenue.

Since Hogan joined Etihad Airways as president and chief executive officer in 2006, the airline has grown from a US$750 million business to one which now turns over nearly US$5 billion a year.

Hogan said Etihad Airways attracted further support from the global financial community in 2012. More than 50 institutions have now provided more than US$6.8 billion in cumulative funding for the airline’s ongoing expansion. “Our bankers understand and trust our business, our vision and our potential,” he said.

During the year, growth in revenue passenger kilometres (RPKs) outpaced growth in available seat kilometres (ASKs) for the fourth year running. RPKs were up 23 per cent to 48 billion (39 billion), on ASKs up 20% to 61 billion (51 billion), resulting in an impressive lift in seat factor of 2.4 points to 78.2% (75.8%).

Equity and codeshare partners delivered more than 1.2 million passengers onto the Etihad Airways network. airberlin, in which Etihad Airways holds a 29.21% stake, made a very strong contribution, with more than 300,000 passengers shared between their networks, delivering more than US$130 million in total to the two airlines.

Despite the increase in global oil prices during 2012, Etihad Airways minimised the impact through its rigorous fuel hedging policy. The airline hedged 80% of fuel costs during the year, the same level as in 2011.