ETIHAD Airways announced its strongest second quarter and half-year financial performances on record, reflecting continued solid growth in its airline alliance strategy and global cargo operations.
The national carrier of the UAE achieved an eight per cent increase in Q2 2013 passenger revenues, generating $921 million ($855 million in 2012), while passenger revenues for the first half of 2013 reached $1.8 billion ($1.6 billion in 2012), up by 13 per cent.
Revenue generated by codeshare and equity alliance airline partners was $184 million in Q2 2013. This was 25 per cent above the $147 million turnover in the same period of 2012. Partnership revenue comprised 20 per cent of the airline’s total passenger revenue in both Q2 and the first half of 2013.
President and chief executive officer of Etihad Airways, James Hogan, said the company’s Q2 and half year results were achieved despite the continuation of unsteady economic and geopolitical factors, with air fare yields slightly lower for the quarter, compressed by strong competitive capacity growth and resultant price competition. “This reflects not only the continuing popularity of our Abu Dhabi hub, but the growing maturity of our airline partnership strategy and the strength of our cargo operations, which continue to well exceed industry growth rates.”
Hogan said a significant achievement in Q2 was the improved contribution of the Etihad Airways equity alliance partners, in particular Germany’s airberlin, which has become the largest codeshare contributor.
Etihad Airways increased its codeshare partnerships adding Serbia’s national carrier, JatAirways, and announced new partnerships with Air Canada, South African Airways and Belavia of Belarussia. With these inclusions, Etihad Airways will have 45 codeshare partners and a virtual global network of more than 350 destinations, the most comprehensive of any alliance or Middle Eastern airline.
Etihad Airways’ Available Seat Kilometres (ASKs) – reflecting network seat capacity – rose by 13 per cent to 17.2 billion. This growth was achieved through the delivery of two new Boeing 777-300 passenger aircraft – a three-class version seating 328 passengers and a two-class model seating 380 – and a corresponding increase in flights, including new services to Amsterdam, Sao Paulo and Belgrade.
Results for Q2 were further strengthened by the introduction late in March of daily flights to a fourth new destination, Washington D.C.
Etihad Cargo continued to achieve the strongest growth in the company with 26 per cent growth in Q2 and 23 per cent growth for the first half of 2013. Cargo performance was further boosted by increased passenger services, providing more under-floor freight capacity.
During Q2 Etihad Airways announced that, subject to regulatory approvals, it would acquire 24 per cent of India’s Jet Airways, enlarging the Etihad Airways equity alliance and group network. The airline also secured Australian regulatory approval to increase its equity stake in Virgin Australia from 10 per cent to 19.9 per cent. As well as this, Etihad holds a 29 per cent shareholding in airberlin, 40 per cent of Air Seychelles and three per cent of Aer Lingus.
The airline also won all three titles in the First Class category of the 2013 Skytrax Awards for airline excellence – Best First Class (fourth consecutive year), Best First Class Seats and Best First Class Catering. Yet another feather in the airline’s cap was when Hogan won the Executive Leadership category at the prestigious annual Airline Strategy Awards in London last month.