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Partnership strategy pays off for Etihad

Partnership strategy pays off for Etihad

Etihad Airways has continued to achieve record growth in the third quarter of 2013, with revenue from passenger services exceeding US$1 billion for the first time and passenger numbers passing three million.

Total revenue rose 11 per cent to US$1.4 billion, compared to US$1.3 billion in quarter three of 2012, while network-wide passenger load factors reached 81 per cent.

Passenger revenues increased by ten per cent during the period, to just over US$1.03 billion, while cargo revenue was up by 39 per cent to US$244 million.

Revenue from codeshare and equity alliance airline partners was US$247 million in quarter three of 2013, 36 per cent higher than the US$181 million delivered in quarter three 2012.

Partnership contributions accounted for 23 per cent of total passenger revenue during the quarter, while passenger numbers rose by 11 per cent to 3.06 million. 

Etihad president James Hogan said the growth occurred in a climate of increasing capacity and ongoing price competition.

It also compensated for reduced travel during the Holy Month of Ramadan, which fell across the traditional peak travel months of July and August.

“In addition to our own growth in quarter three, we continued to develop our partnership strategy,” Hogan said.

“Headlining our partnership activities, we continued to work closely with regulatory authorities in India as we progressed our plans to acquire 24 per cent of Jet Airways – the first offshore investment in an Indian airline under the country’s Foreign Direct Investment legislation.

“We signed an agreement with the government of Serbia to enter into a five-year contract to manage Serbia’s national airline, Air Serbia, currently trading as Jat Airways, and integrated its frequent flyer programme with our own Etihad Guest.

“We also increased our stake in Virgin Australia from 10.5 to 17.4 per cent, and launched partnerships with South African Airways, Air Canada, Belavia and Korean Air, taking to 46 our number of codeshare agreements and expanding our virtual network to 375 destinations.”