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Etihad Airways posts 200% rise in profit

Feb 04 2013 10:17 AFP

(Duncan Alfreds, News24)

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Abu Dhabi - Etihad Airways, the fast-growing carrier of Abu Dhabi, posted a 200% rise in net profit in 2012 and a 17% increase in revenues, the airlines said in a statement on Monday.

Etihad posted a net income of $42m last year compared to $14m in 2011 when it made its first ever profit, said the statement which attributed the rise to strong improvements in revenues, passengers and cost control.

The flag carrier of the Emirati capital Abu Dhabi said revenues increased to $4.8bn in 2012 compared to $4.1bn the previous year.

The number of passengers grew a healthy 23% to 10.3 million compared to 8.4 million in 2011, significantly boosted by Etihad's partnerships which delivered more than $600m in total revenue.

"This has been a game-changing year for Etihad Airways," James Hogan, the airline's president and chief executive officer said.

"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," he said in the statement.

Etihad said it succeeded in building the first "equity alliance" with investments of 40% in Air Seychelles, 29.2% in airberlin, 9.0% in Virgin Australia and about 3.0% in Aer Lingus.

"We have taken great strides in building the industry's first equity alliance ... which (is) contributing significant value to our business," Hogan said.

Earnings before interest and tax (EBIT) rose 24% to $170m, while EBITDAR (earnings before interest, tax, depreciation, amortisation and rentals) rose to $753m, up 16%, Etihad said.

Hogan said more than 50 institutions have provided around $6.8bn in cumulative funding for the airline's ongoing expansion.

Planned fleet upgrades for 2013 include 14 aircraft, with 11 passenger aircraft deliveries and three freighter deliveries, Etihad said.

The orders are for nine wide-bodied Boeing and Airbus aircraft and five narrow-body Airbus aircraft. These will meet Etihad Airways' immediate growth requirements.

At the end of 2012, the company had 10 656 employees, 18% more than in 2011, representing more than 125 nationalities.

Etihad Airways, which began operations in 2003, serves 86 passenger and cargo destinations in the Middle East, Africa, Europe, Asia, Australia and the Americas.

It operates a fleet of 70 Airbus and Boeing aircraft, and over 90 aircraft on firm order, including 10 Airbus A380s, the world's largest passenger aircraft.

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