Etihad records record H1 with 28% revenue increase

Etihad Airways today reported its most successful first half year, with revenues up 28% to US $1,720 million (H1 2010: $ 1,342 million), driven by solid performances in both passenger and cargo activities.

A 2% reduction in costs per available seat kilometre, despite large increases in oil prices, also helped deliver a positive EBITDAR (earnings before interest, tax, depreciation, amortisation and rentals) in the six months from January 1 for the first time.

The results mark continued progress towards the airline’s goal of breaking even this year and moving into sustainable profitability in 2012.

James Hogan, Etihad Airways chief executive officer, said the results were achieved despite a still fragile economy and, at times, difficult operating conditions.

“These are exciting new destinations for us. China is a huge market and Chengdu is the economic centre and transportation and communications hub of the country’s booming southwest region,” he said.

“Shanghai is the most populous city in mainland China (23 million) and when combined with our daily flights to the capital Beijing enables us to offer local passengers convenient flight options to the UAE, Middle East, Europe and North America.

“We are determined to build a schedule which increases customer choice and attracts local point-to-point traffic in line with the Abu Dhabi 2030 plan.”

The delivery of five new wide-body passenger aircraft – three A330-300s and two B777-300ERs during the 2011 summer allowed frequencies to be increased to several major markets.

Manchester becomes a double -daily destination from August 1. Daily services were also introduced to Geneva, Milan and Beijing, while two extra flights to Brussels enabled the Belgian capital to be serviced eight times a week.

Hogan said passenger revenues rose 21% on the back of a 14% growth in passenger numbers to 3.8 million and 5% growth in passenger yield.

Despite political unrest in the Middle East and the Japanese earthquake, seat factor increased to 72.9% (H1 2010: 72.5%).

Etihad’s cargo operations enjoyed strong growth with revenues up by 32% in the first half of the year, bolstered by improvement in tonnage and yields.

“This is a wonderful achievement and Etihad Crystal Cargo plays a hugely important part in the on-going success of the airline as it now contributes 20 per cent of our direct operating revenue,” Hogan said.

These results reflect higher utilisation of the freighter fleet, increased business segmentation and an expansion of trucking operations in the GCC.