Etihad Airways, the national carrier of the United Arab Emirates, yesterday announced record financial results for 2013, with net profit up 48% to US$62m.
The record performance also saw earnings before interest and tax up 22% to $208m and earnings before interest, tax, depreciation, amortisation and rentals up 30% to $979m, a margin of 16% of total revenues, says a press release.
This marked the third successive year of net profitability in the airline’s tenth year of operation.
James Hogan, President and Chief Executive Officer of Etihad Airways, said: “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 $300m in revenues in 2005 to more than $6b today.
“We have delivered that through our unique strategy, which has seen us combine industry-leading organic growth with wide-ranging partnerships and minority equity investments in strategically important carriers around the world.”
Revenue increased by 27% to $6.1b on passenger numbers up 12% to 11.5m. Revenue Passenger Kilometres – measuring passenger journeys - increased by 16% to 55.5bn, while Available Seat Kilometres– representing capacity - grew by 17% to 71.1bn.
These figures reflected strong growth in passenger traffic volumes, in a year when Etihad Airways added six new destinations – Washington DC, Amsterdam, Sao Paulo, Belgrade, Ho Chi Minh City and Sana’a - and increased capacity on 18 existing routes. At year’s end, the average network-wide seat load factor was 78%, unchanged from 2012.
A key driver of Etihad Airways’ growth in 2013 was its partnership strategy, based on wide-ranging codes hares and its unique approach of minority equity investments in strategically important airlines.
This has accelerated network growth, giving it the largest route network of any Middle Eastern carrier, reaching almost 400 destinations; boosted sales and marketing opportunities in key markets around the world; and allowed significant business synergies and cost savings.
This strategy delivered revenues of $820m in 2013, up 30%, and represented 21% of total passenger revenues for Etihad Airways.
The airline has a fleet of 91 Airbus and Boeing aircraft, and over 220 aircraft on firm order, including 71 Boeing 787s, 25 Boeing 777-X, 62 Airbus A350s and 10 Airbus A380s. Etihad Airways holds equity investments in airberlin, Air Seychelles, Virgin Australia, Aer Lingus, Air Serbia and Jet Airways, and is seeking regulatory approval to invest in Swiss-based regional carrier Darwin Airline.
