Etihad 3Q2014: partner revenue reaches 27%, but clouded by Germany's codeshare rejection

Etihad Airways appears to have re-gained momentum in 3Q2014, with passenger revenue growth of 26% outpacing its 16% increase in ASKs. This reverses the trend from 1H2014 when 14% passenger revenue growth was outpaced by a 19% increase in ASKs. The strong third quarter coincides with what is the peak travelling season in many of Etihad's markets, and is also Etihad's busiest period for growth.

Partner revenue continues to drive the story, with partner revenue growing at 44%, faster than the 26% growth in organic passenger revenue. In the first three quarters of 2014, partner revenue reached USD823 million, setting Etihad well on course to achieve over USD1 billion of partner revenue in 2014. Partner revenue accounted for 27% of passenger revenue in 3Q2014, and 25% of passenger revenue in the first three quarters of 2014. This critical, and unique, revenue stream is clouded by growing protectionism, as seen with Germany's recent rejection of Etihad-airberlin codeshares.