Abu Dhabi-based Etihad Airways expects to carry 30 percent more passengers this year and said strong demand in the Middle East would help it withstand any drop in global travel on the back of a economic slowdown.
"The slowdown is hitting the US and European carriers, but investments in Abu Dhabi over the next 6 years is 170 billion euros, so that brings huge activity from India, Southeast Asia," Etihad Airways Chief Executive James Hogan told Reuters in an interview on Monday.
The International Air Transport Association told Reuters on Sunday that global airlines are likely to see a further profit cut in 2008 as the global credit crisis deepens, while fuel costs remain near record highs.
"We're probably in a better shape than most airlines in the world," said Hogan, who expects the four-year-old airline will break even by 2010. He declined to reveal specific financial figures, but said the carrier has hedged 80 percent of its fuel needs to help cushion the impact of high oil prices.
Etihad Airways carried 4.6 million passengers in 2007, and sees this rising to 6 million this year, and up to 8 million in 2008 as more businessmen, workers and tourists head for the Middle East.
The carrier, which has a fleet of 37 planes and another 19 due for delivery by 2011, expects to announce this year an order for 50 wide body and narrow body aircraft from Airbus or Boeing to cope with expansion up to 2020.
"We're still going through the process and once we agree with the board and the government, then we make an announcement," Hogan said on the sidelines of an aviation conference. He said the announcements of delays in Boeing's wide body 787 Dreamliner will not affect the carrier's buying decision.
Comments
Comments are closed.