Etihad Airways has reported a sharp increase in revenue as the carrier seeks to break even during the coming financial year.

The airline generated US$3 billion in revenue during financial 2010, up from US$2.3 billion the previous year.

This is well ahead of capacity growth, which saw available seat kilometres rise 19.5 per cent to 45.1 billion during 2010.

Etihad Airways’ chief executive, James Hogan, said: “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.”

Etihad has previously outlined plans to break even in 2011, before generating profits in 2012.

The airline was recently recognised as the World’s Leading Airline for the second consecutive year by the prestigious World Travel Awards.

Chief executive James Hogan is buoyant over the future of Etihad

Etihad Airways

Passenger numbers at Etihad topped seven million for the first time, up 13.1 per cent to 7.1 million, while seat factors increased by 0.5 per cent points to 74 per cent.

The airline confirmed it had reported a positive EBITDAR (earnings before interest, taxation, depreciation, amortisation and rentals) for the full year, the first time it had achieved this since it was formed in 2003.

“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,” continued Hogan.

“Yet despite this, we brought our costs down while increasing passenger numbers and yield.”

Etihad launched services to Alexandria, Baghdad, Colombo, Erbil, Nagoya, Seoul and Tokyo in 2010, as well as opening new premium lounges in Dublin and Manchester. 

Its fleet increased by six to 57 aircraft.