ETIHAD Airways recently reported its most successful first quarter to date, with revenues up 21.2 per cent to $770 million, attributable to strong performances in both passenger and cargo traffic.
Coupled with a 5.9 per cent reduction in costs per available seat kilometre, this delivered positive EBITDAR (earnings before interest, tax, depreciation, amortisation and rentals) in the quarter for the first time.
The results mark continued progress towards the airline’s goal of break-even in 2011 and profitability in 2012.
Passenger revenues rose 15 per cent on the back of a 10.6 per cent growth in passenger numbers, to 1,854,392. Seat factor fell slightly to 72.7 per cent (Q1 2010: 75.1 per cent) due to the impact of Middle East unrest and the Japanese earthquake.
Cargo revenues grew by 44 per cent year on year on a capacity growth of 22 per cent for the quarter, with March representing Etihad Crystal Cargo’s best month ever in terms of revenues, number of shipments and tonnage carried.
CEO James Hogan said: “I am pleased to report more positive progress on our journey towards break-even and profitability. Our revenues continue to grow faster than our passenger numbers and, thanks to our robust cost controls, we are seeing a real benefit in our overall performance. This marks the first time we have delivered positive EBITDAR in Q1.”
He said particular highlights during the quarter included continued expansion of the network, the announcement of increased frequencies to major markets during 2011, supported by the delivery of five new wide-body passenger aircraft, the impact of the carrier’s comprehensive partnership with Virgin Blue, the deployment of leading-edge origin and destination revenue management technology, allowing the airline to maximise revenue through improved inventory availability decisions and the launch of ‘Essential Abu Dhabi’, a destination marketing campaign supported strongly by hotels and attractions, designed to enhance the emirate’s place as a top tourist and Mice destination.
Hogan added: “Subject to the state of the overall global economy, we believe we are well positioned to continue our journey to profitability.
“Fuel prices will be a major challenge for the airline industry this year but I am glad to report that Etihad has hedged more than 75 per cent of its fuel requirements for 2011.”