ETIHAD Airways reported its most successful first half year, with revenues up 28 per cent to $1.72 billion from $1.34 billion in 2010, driven by solid performances in both passenger and cargo activities.
A two-per-cent reduction in costs per available seat kilometre, despite large increases in oil prices, also helped deliver a positive EBITDAR (earnings before interest, tax, depreciation, amortisation and rentals) in the six months from January 1 for the first time.
The results mark continued progress towards the airline’s goal of breaking even this year and moving into sustainable profitability in 2012.
CEO James Hogan said the results were achieved despite a still fragile economy and, at times, difficult operating conditions.
They were released as Etihad prepares to significantly expand its global network.
Flights to two new Chinese cities, Chengdu and Shanghai, were recently announced and services to Malé and the Seychelles start on November 1.
“These are exciting new destinations for us. China is a huge market and Chengdu is the economic centre and transportation and communications hub of the country’s booming southwest region,” said Hogan.
“Shanghai is the most populous city in mainland China (23 million) and, when combined with our daily flights to the capital Beijing, enables us to offer local passengers convenient flight options to the UAE, Middle East, Europe and North America.”
The delivery of five new wide-body passenger aircraft – three A330-300s and two B777-300ERs during the 2011 summer – allowed frequencies to be increased to several major markets.
Manchester became a double-daily destination from August 1. Daily services have also been introduced to Geneva, Milan and Beijing, while two extra flights to Brussels enabled the Belgian capital to be serviced eight times a week.
Hogan said passenger revenues rose 21 per cent on the back of a 14 per cent growth in passenger numbers to 3.8 million and five per cent growth in passenger yield.
Despite political unrest in the Middle East and the Japanese earthquake, seat factor increased to 72.9 per cent from 72.5 per cent in the same period last year.
Etihad’s cargo operations also enjoyed strong growth with revenues up by 32 per cent in the first half of the year, bolstered by improvements in tonnage and yields.
“This is a wonderful achievement and Etihad Crystal Cargo plays a hugely important part in the on-going success of the airline as it now contributes 20 per cent of our direct operating revenue,” said Hogan.
These results reflect higher utilisation of the freighter fleet, increased business segmentation and an expansion of trucking operations in the GCC.
Cargo revenue surged out of the UK, the UAE, Germany, China and India.
In fact Etihad recently took delivery of its first Boeing 777 Freighter, joining its cargo fleet of two Airbus A330-200Fs, two Airbus A300-600Fs and two McDonnell Douglas MD11s.
So far this year new freighter services have also been launched to Johannesburg, Amsterdam and Kabul while the frequency of cargo services to Milan, Frankfurt-Hahn, Shanghai, Nairobi and Erbil has also been expanded due to growing demand.
And in further cause for celebration Etihad’s head of environmental affairs Linden Coppell has been appointed to chair the International Air Transport Association (IATA) Environment Committee.