Etihad reports revenue growth in 2010; continuing road to profitability

Etihad Airways confirmed (11-Jan-2011) the following financial/traffic results for 2010 (The National/Bloomberg, 11-Jan-2011):

• Revenue: USD2,951 million, a 29.2% year-on-year increase;
  • Cargo division: +57.4%;
• Operating expenses: Reduced by USD320 million;
• Passenger numbers: 7.1 million, +13.1%. Passenger numbers exceeded 7 million for the first time;
• Traffic (RPKs):33.4 billion, +20.1%;
• Capacity (ASKs): 45.1 billion, +19.5%;
• Load factor: 74.0%, +0.5 ppts.

The airline also confirmed that, as previously forecast, it had reported a positive EBITDAR for the full year, the first time it had achieved this since it was formed in 2003. Etihad is forecasting a break-even result in 2011 and a profit in 2012. [more]

Etihad Airways: "This is a result to celebrate. In a year in which we dealt with the continuing effects of global recession, erupting volcanoes, riots in Thailand, and severe weather across Europe at one of our busiest times of year, we were still able to deliver an impressive performance. We continued to invest in routes and infrastructure, adding seven new destinations during the year, as well as welcoming more than 800 new employees to the Etihad family. Yet despite this, we brought our costs down whilst increasing passenger numbers and yield. We began a cost reduction programme in 2010 to identify USD250 million of annualised cost savings. I am delighted to say that thanks to the focus of our management team and operational staff, we have found more than USD320 million of savings, beating our own target and bringing even greater efficiency to the airline", James Hogan, CEO. Source: Company Statement, 11-Jan-2011.

Etihad Airways: "We are seeing a growing confidence in many of our international markets, pointing to a strong performance in 2011. Premium travellers are returning, particularly on our 'trunk routes' into Europe, Asia and Australia, and forward bookings look positive. We are seeing, already, particularly strong benefits from our Virgin Blue alliance. We are also seeing results from the investments in tourism in Abu Dhabi itself, with growing numbers of our guests choosing the emirate as their final destination. We are confident we will achieve our goals in 2011, further developing the commercial success of the world's leading airline," James Hogan, CEO. Source: Company Statement, 11-Jan-2011.