Profits up at Etihad airways despite rising fuel prices

Profits up at Etihad airways despite rising fuel prices

Etihad Airways has announced a 31 per cent increase in its quarter two 2012 revenues to US$1.25 billion, contributing to first half 2012 revenues up 30 per cent to US$2.24 billion.

Passenger numbers leapt to 2.55 million in quarter two, up 34 per cent, and to 4.89 million in the half year, thanks to increased overall capacity and improved seat factors.

The record results were boosted by the airline’s growing network of codeshare and strategic partnerships which together fed 800,000 passengers into Etihad Airways’ network in the last six months, contributing US$281 million.

During the quarter, Etihad Airways took minority equity stakes in Aer Lingus and in Virgin Australia, adding to its minority shareholdings in airberlin and Air Seychelles.

Together these five airlines carried 72 million passengers on 376 aircraft in 2011, generating combined revenues of more than US$14 billion.

James Hogan, cheif executive of Etihad said: “These results are an endorsement of our strategy, which has seen us widen and deepen our partnerships in addition to continued focus on our organic growth plan.

“In a quarter when many airlines have seen demand softening, we have been able to add more passengers than ever before, with growth outstripping our capacity increases.”

Last month the International Air Transport Association (IATA) reported the recent fall in oil prices had been “offset by the continued and deepening European sovereign debt crisis which had led markets to expect a further deterioration and damage to economic growth”.

But Hogan said the airline was on track for a successful full year performance, despite the challenging market conditions.

“This continues to be a tough operating environment for all airlines. Our strategies allow us to drive quality revenue and we remain focused and on track to deliver profitability for the full year, for the second year running,” he explained.