Etihad net profit soars 200% in 2012
Feb 05, 2013 (Khaleej Times - McClatchy-Tribune Information Services via COMTEX) --
Net profit of Etihad Airways, the national airline of the UAE, rocketed 200 per cent to $42 million in 2012, seeing strong improvements in revenues, passenger numbers and cost control.
Revenue increased 17 per cent to $4.8 billion on passenger numbers up 23 per cent at 10.3 million. These numbers were boosted significantly by Etihad's equity partnerships and codeshares, which delivered more than $600 million in total revenue.
"This has been a game-changing year for Etihad Airways," said James Hogan, president and chief executive officer of Etihad Airways. "We have delivered improved net profit, the second consecutive year we have been in the black, a remarkable achievement given the youth, ambitious growth and ongoing investment made by this airline in a challenging global economic environment."
"We have taken great strides in building the industry's first 'equity alliance', with our investments in Air Berlin, Air Seychelles, Virgin Australia and Aer Lingus, which are contributing significant value to Etihad," he added.
"And we have met our mandate of contributing to the economic development of Abu Dhabi, growing its aviation sector and building trade and tourism connections across the globe."
Earnings before interest and tax rose 24 per cent to $170 million, while earnings before interest, tax, depreciation, amortisation and rentals rose to $753 million, a margin of 16 per cent on total revenue.
Saj Ahmed, a London-based aviation analyst, said Etihad's "profit surge is on the higher side of even my expectations and it's likely that this financial strength will continue to be order of the day for the airline."
"Etihad has shown that its dual strategy of organic expansion as well as that via partners and code shares is reaping it significant rewards," he added. "Etihad is definitely on the right track; its results equally highlight the robustness of its unique business model and that the GCC region is still as robust as it was before the economic gloom in the region."
Equity and codeshare partners delivered more than 1.2 million passengers onto the Etihad Airways network. Air Berlin, in which Etihad holds a 29.21 per cent stake, made a very strong contribution, with more than 300,000 passengers shared between their networks, delivering more than $130 million in total to the two airlines.
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