Etihad Airways passenger revenue exceeds US1 Billion

Total revenue rose 11 per cent to US$1.4 billion, compared to US$1.3 billion in Q3 of 2012, while network-wide passenger load factors reached 81 per cent. 

Passenger revenues increased by 10 per cent in Q3 2013, to just over US$1.03 billion (2012: US$938 million), while cargo revenue was up by 39 per cent to US$244 million (2012: US$176 million). 

Revenue from codeshare and equity alliance airline partners was US$247 million in Q3 2013, 36 per cent higher than the US$181 million delivered in Q3 2012. Partnership contributions accounted for 23 per cent of total Q3 passenger revenue, while passenger numbers rose by 11 per cent to 3.06 million (2012: 2.75 million). 

The president and chief executive officer of Etihad Airways, James Hogan, said the Q3 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 Q3, 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 program 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.” 

Analyst Saj Ahmad commented: “Etihad's growth points to another year of profitability on the back of demand via its Abu Dhabi hub. 

“With a 12% rise in passenger revenue on the same load factors as last year, the airline is keeping a sharp focus on yields as more premium traffic filters through its network, thanks in part to its partner airlines like Air Berlin and Air Seychelles.” 

He added: “Etihad is on track to demonstrate another year of solid profits just ten years after launching - a remarkable feat considering the spike in oil prices and economic angst that we've witnessed in recent years.”