- Etihad
Airways confident of full year profitability despite challenging
global economic environment
- On
track to carry 10 million passengers in 2012, driven by record seat
factors- Codeshare and partner revenues grow 51 per cent to provide best-ever contribution
- Revenue contribution from airberlin group surpasses full year estimate during the quarter
- Air Seychelles poised to break even in 2012, in first year of Etihad Airways management contract
Etihad
Airways, the national airline of the UAE, today reported third
quarter revenues of US$ 1.3 billion, up 19 per cent on 2011 (US$ 1.1
billion). The record revenues reflected passenger numbers up 23 per
cent, with 2.79 million travellers in the quarter (2.27 million).
Seat
factors of 81.2 per cent mark the best ever quarterly performance by
the airline, with passenger numbers on track to pass the 10 million
milestone in 2012.
The
rise in revenues continues to outperform the airline’s growth in
capacity and Etihad Airways remains confident of achieving full year
profitability for the second year running.
Passenger
revenues were boosted by codeshare and partner revenues, which jumped
51 per cent to US$ 182 million (US$ 121 million). The airline's
38 partners helped to create a total network of 315 destinations,
more than any other Middle Eastern carrier.
A
significant contribution came from airberlin, in which Etihad Airways
holds a 29.21 per cent equity stake. The two airlines' extensive
codeshare and joint marketing agreements have delivered US$ 51
million in revenues to Etihad Airways year-to-date, surpassing the
initial full year estimates.
Etihad
Airways and airberlin have delivered a combined total of more than
150,000 passengers into each other’s networks so far this year.
Etihad
Airways and airberlin have established a foundation for further cost
synergies through mutual maintenance programs, the integrated 787
Dreamliner program and international sales representation.
Air
Seychelles, in which Etihad holds a 40 per cent stake, continues to
grow revenues through increased frequencies and codeshares, with four
flights to Abu Dhabi now offering 375 sub-four hour onward
connections a week. Air Seychelles is also reducing costs as it
leverages synergies, sharing economies of scale and integration of
back office functions with Etihad Airways in Abu Dhabi.
Air
Seychelles remains on track to break even in 2012, in the first year
of Etihad Airways’ five-year management contract, confirming a
dramatic turnaround in the airline’s economic fortunes after
several years of heavy losses.
Virgin
Australia, in which Etihad Airways now holds a 10 per cent stake,
continued to deliver a strong contribution, with codeshare revenues
to Etihad Airways up 16 per cent year-on-year.
James
Hogan, Etihad Airways’ President and Chief Executive Officer, said:
"Our third quarter saw continued progress across the business,
with all key indicators showing strong performance and we remain
confident of delivering full year profitability based on current
market conditions.
"We
are particularly pleased with the contribution from our codeshare and
equity partners. This component of our strategy is delivering a
strong and growing revenue stream, complementing our own double-digit
organic growth."
Revenue
from codeshare partners represented 18 per cent of Etihad Airways’
total passenger revenue in the quarter.
During
the quarter, Etihad Airways signed interline and codeshare agreements
with Aer Lingus, China Eastern Airlines and RAK Airways, further
expanding the network’s footprint.
Etihad
Airways continued to drive down costs, with costs per available seat
kilometre (CASK), excluding fuel, falling to their lowest levels this
year. An independent benchmarking study by aviation consultants
Seabury shows that Etihad Airways is in the lowest cost quartile for
CASK, when compared to major international full service airlines.
Fuel
remained the single largest operating cost for the business and
represented 37 per cent of total expenditure for the quarter. Etihad
Airways has 80 per cent of its fuel hedged at price levels well below
current market prices with 21 leading international financial
institutions for the remainder of 2012, as part of a three-year
rolling hedging program.
James
Hogan added: "We continue to face an incredibly tough operating
environment. Fuel prices remain high and the global economy still
carries challenges. The Eurozone remains in trouble and there is
still some softness in a number of Middle Eastern markets.
"However,
the wide segmentation of our business is helping to ensure our
continued profitable growth. Australia and our major Asian
markets are performing strongly. Our routes into China -
Beijing, Shanghai and Chengdu - are showing particular potential,
which will be further boosted by the strong growth of connecting
markets into Africa and our codeshares.”
Etihad
launched daily services to Lagos during the third quarter, with new
routes soon to open to Ahmedabad (November 1) and Addis Ababa
(November 2). New routes to Washington DC, Sao Paolo and Ho Chi Minh
City have already been announced for 2013.