Etihad reports 29% 2010 revenue increase, sees 2012 profitability

Etihad Airways A330-200. Photo: By Rob Finlayson.

Etihad Airways reported a 29.2% rise in revenue in 2010 to $2.95 billion on a 19.5% increase in capacity to 45.1 billion ASKs and 13.1% growth in passengers carried to 7.1 million.

Load factor inched up 0.5 points, to 74% and RPKs rose 20.1% to 33.4 billion. Its fleet grew by six units, including two Airbus A330-200Fs, to 57 aircraft. Cargo revenue rose 57.4%.

CEO James Hogan cited the airline's cost management program as an important element of its performance during the year. "We began a cost reduction program in 2010 to identify $250 million of annualized cost savings," he said, noting that owing to the focus of its management team and operational staff, "we have found more than $320 million of savings, beating our own target and bringing even greater efficiency to the airline."

The Abu Dhabi-based and owned carrier confirmed that, as previously forecast, it achieved a positive EBITDAR for the full year for the first time since it was formed in 2003, although a figure was not released. Etihad reiterated its confidence in reaching the break even target this year and profitability in 2012.  

Hogan said the outlook for 2011 was "strong" with global operating conditions continuing to improve. "We are seeing a growing confidence in many of our international markets, pointing to a strong performance in 2011," he stated. "Premium travelers are returning, particularly on our trunk routes into Europe, Asia and Australia, and forward bookings look positive. We are seeing, already, particularly strong benefits from our Virgin Blue alliance."