Etihad’s net profit jumps 200% to $42M

MANILA, Philippines - Etihad Airways, the national carrier of the United Arab Emirates, reported a net profit of $42 million in 2012, up 200 percent on 2011 ($14 million) in a year which saw strong improvements in revenues, passengers numbers and cost control.

Revenue increased 17 percent to $4.8 billion ($4.1 billion), on passenger numbers up 23 percent to 10.3 million (8.4 million). These numbers were boosted significantly by Etihad Airways’ equity partnerships and codeshares, which delivered more than $600 million in total revenue.

James Hogan, president and chief executive officer of Etihad Airways, said: “This has been a game-changing year for Etihad Airways.

 â€œWe 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.

 â€œWe have taken great strides in building the industry’s first ‘equity alliance’, with our investments in airberlin, Air Seychelles, Virgin Australia and Aer Lingus, which are contributing significant value to our business.

“And we have met our mandate of contributing to the economic development of Abu Dhabi, growing its aviation sector and building trade and tourism connections across the globe.”

Earnings before interest and tax (EBIT) rose 24 percent to $170 million ($137 million), while EBITDAR (earnings before interest, tax, depreciation, amortization and rentals) rose to $753 million ($648 million), a margin of 16 percent on total revenue.

Since Hogan joined Etihad Airways as president and chief executive officer in 2006, the airline has grown from a $750-million business to one which now turns over nearly $5 billion a year.

Hogan said Etihad Airways attracted further support from the global financial community in 2012. More than 50 institutions have now provided more than $6.8 billion in cumulative funding for the airline’s ongoing expansion. “Our bankers understand and trust our business, our vision and our potential,” he said.