ETIHAD Airways reported third quarter revenue growth of 39 per cent to $1.1 billion from $785 million over the same period last year, and 18 per cent growth on passenger numbers to 2.25 million (1.9 million the previous period) in the airline’s strongest ever third quarter. Seat factor increased by 3.8 per cent to 80.7 per cent, the highest quarterly result in its history. Operating costs rose 12 per cent, on a 12 per cent rise in capacity, while non-fuel costs rose only seven per cent. The airline has 81 per cent of its fuel hedged for the rest of 2011.
Etihad’s chief executive officer, James Hogan, said these figures contributed to strong profitability at an EBITDAR (earnings before interest, tax, depreciation, amortisation and rentals) level and the airline had moved into monthly operating profitability.
“Despite the continuing challenges of high fuel prices and economic downturn in many of the markets in which Etihad operates, we are seeing strong growth in all our key commercial indicators,” Hogan said.
“We are doing this by creating and marketing the world’s leading air travel product, while maintaining a rigorous focus on costs. Our clear target is to break even in 2011 and this is another big step in the right direction for us. We are well on track to delivering a continuing financial return to our shareholder.”
The quarter saw consistently strong performance across all markets. Particularly popular routes included those to the Americas (New York, Chicago and Toronto), Asia Pacific (Bangkok, Jakarta, Kuala Lumpur, Colombo, Manila, Sydney and Melbourne), Cairo, London, Dublin, Athens and Istanbul.
The airline has added six aircraft to its fleet in the last 12 months, enabling the airline to build greater depth into its schedule and increase weekly frequencies to key markets including Paris, Manchester, Milan, Geneva, Brussels, Bangalore, and Manila.
Looking ahead, Etihad will begin flying to six new destinations in the coming months, including the Maldives (from November 1), the Seychelles (November 2), Chengdu in China (December 15), Düsseldorf (December 16), Shanghai (March 1, 2012) and Nairobi (April 1, 2012).
The airline also announced that it would soon begin flights to Tripoli, its fifth North African destination. “As soon as the NATO no-fly zone is lifted, the airport is declared safe and all appropriate infra-structure is in place we will be able to begin services,” Hogan said.
“Next year we take delivery of another seven passenger aircraft – four B777-300ER aircraft, plus three A320-200s – so the careful, strategic expansion of our global network will continue apace,” he further added.
Etihad Crystal Cargo also performed well during Q3, with revenue up $37 million to $168 million ($131 million), supported by a 16 per cent year-on-year growth in tonnage (from 66,916 to 77,623 tonnes) and a 10 per cent year-on-year increase in average yields.
In July, Almaty became a freighter destination, while a new B777 freighter entered service which now operates six times a week to Shanghai. In September, Etihad expanded its Johannesburg operations to include a twice weekly dedicated freighter operation.
The airline is also committed to optimising its Green credentials and has started an engine upgrade program for more than half its Airbus A330 fleet. Scheduled to last two years, the program will see all 15 of the airline’s A330 aircraft featuring Trent 700 engines, delivered prior to 2010, being retrofitted with enhanced performance kits. This will mean less fuel burn which at current fuel prices should equate to fuel savings of approximately $170,000 per aircraft equivalent to $2.6 million per annum for the retrofitted A330 fleet.