Etihad Triples Profit

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(Image - Etihad)

The national carrier of the UAE, Etihad Airways, has reported net profit of US$42 million in 2012, up 200% on 2011 which saw $14m.

Total revenue increased 17% from $4.1bn to $4.8bn, as the airline saw a 23% year-on-year increase in passengers from 8.4 million to 10.3 million.  In addition, Etihad’s equity partnerships and codeshares delivered more than $600 million in total revenue.

President and CEO James Hogan said that 2012 was “game-changing”, adding:  “We have delivered improved net profit, the second consecutive year we have been in the black, a remarkable achievement given the youth, ambitious growth and ongoing investment made by this airline in a challenging global economic environment.

“We have taken great strides in building the industry’s first ‘equity alliance’, with our investments in airberlin, Air Seychelles, Virgin Australia and Aer Lingus, which are contributing significant value to our business.”  These partners delivered more than 1.2 million passengers on to the Etihad network.

Earnings before interest and tax (EBIT) rose 24% to $170m, while EBITDAR (earnings before interest, tax, depreciation, amortisation and rentals) rose to $753m from $648m.

Mr Hogan said that the airline attracted further support from the global financial community in 2012.  More than 50 institutions have now provided more than $6.8bn in cumulative funding for the airline’s ongoing expansion.

As in the previous year, the carrier minimised the impact of rising oil prices by hedging 80% of its fuel costs.  Mr Hogan insisted:  “We understand how to manage costs without compromising our innovative product and outstanding service experience.”

In 2013, deliveries for six Boeing 777-300ER, two Boeing 777 Freighter, one Airbus 330 Freighter, four Airbus A320 and one Airbus 321 aircraft are expected.

By the end of last year, the company employed 10,656 people of more than 125 nationalities.  The Emiratisation programme remains successful with 1,254 Emiratis now employed by the airline, representing 22% of the core Head Office workforce.


Key Indicators* 2012 2011 Variance
Revenue (US$ billion) 4.8 4.1 17%
Net profit (US$ million) 42 14 200%
EBIT (US$ million) 170 137 24%
EBITDAR (US$ million) 753 648 16%
Passengers (million) 10.3 8.4 23%
Revenue passenger kilometres (billion) 48 39 23%
Available seat kilometres (billion) 61 51 20%
Seat factor 78.2% 75.8% 2.4 pts
Number of aircraft 70 64 6 aircraft
Number of employees 10,656 9,038 18%
Cargo tonnage (tonnes) 367,837 310,188 19%
Codeshare partners 41 29 12


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