Etihad Airways, the fast-growing carrier of Abu Dhabi, on Thursday posted a net profit of $14 million for 2011, exceeding its goal of breaking even for the first time ever, a statement said. The flag carrier of the United Arab Emirates said its revenues were up 36 percent in 2011 to $4.1 billion.
"The record result exceeded the airline's 2011 target, which was to break even," the statement said. The carrier transported 8.3 million passengers in 2011, up 17 percent from the previous year, with an average seat factor of 75.8 percent. Earnings before interest, tax, depreciation, amortisation and rentals (EBITDAR) stood at $648 million, while earnings before interest and tax only amounted to $137 million. Etihad posted $1.72 billion in revenues for the first half of 2011, up 28 percent on the same period of 2010.
"This is an historic day for Etihad Airways and an amazing achievement for an airline just eight years old," said James Hogan, president and chief executive officer of Etihad.
Etihad began operations in 2003. Hogan said cost control, excluding fuel, has contributed to saving $187 million annually, adding that the carrier's "management culture is that of a low-cost airline." The airline also hedged more than 80 percent of fuel costs in 2011, while the figure for 2012 is currently at 75 percent.
In December, Etihad increased its stake in Germany's second-largest airline airberlin to 29.21 percent, with an investment of 72.9 million euros ($95 million at the time of announcement). As part of ther deal, Etihad undertook to arrange for debt financing totalling $255 million for airberlin. Last month Etihad announced signing a memorandum of understanding with the government of the Seychelles to acquire a 40 percent stake in Air Seychelles for $20 million. The carrier will also provide a shareholder's loan of $25 million to meet working capital requirements and support network development, it said.