Etihad Airways has reported Q3 2014 revenues of
US$1.8 billion, an increase of 29% year-on-year.
A total of 3.9
million passengers travelled with Etihad Airways between July and
September this year, 30% more than the same period in 2013.
Cargo also outperformed the global market, carrying 144,498 tonnes
of freight and mail during the third quarter, a year-on-year
increase of 9%, on only 1% capacity growth.
The growth in passenger demand and revenue
during the three-month period again outstripped the airline’s
capacity increase, highlighting the strength of its long-term
growth strategy. Etihad Airways remains on track to achieve its
strongest ever annual results, having carried 10.5 million
passengers and almost 415,000 tonnes of cargo between January and
“Our focus on organic
growth, codeshare partnerships and minority investments in other
airlines has continued to produce strong results, despite the
prevalence of industry challenges such as volatile oil prices,
economic and political instability, overcapacity in the market,
and access constraints,” said James Hogan, President and Chief
Executive Officer of Etihad Airways. “We are confident about
sustaining our profitability in 2014 and there are a number of
important milestones in the final quarter, including the entry
into service of Etihad Airways’ ground-breaking Airbus A380 and
Boeing 787-9 Dreamliner in our striking new livery. These aircraft
will feature our next generation First, Business and Economy Class
products, together with
The Residence by Etihad, the world’s
first three-room private cabin. In addition, we will introduce
Phuket, San Francisco and Dallas into our network over the
remainder of this year.”
Following the launch of
services to Medina, Jaipur, Los Angeles and Zurich in the first
half of 2014, the third quarter included the start of Yerevan,
Perth and Rome services, while frequencies increased on eight
existing routes, including Dublin, Athens and Chennai. The
airline’s global route network currently includes 110 existing or
announced destinations, with flights launching to Phuket this
month, San Francisco in November, and Dallas in December.
Organic growth was supported by codeshare and equity
partnerships in the third quarter of 2014, delivering an estimated
1.1 million passengers onto Etihad Airways flights (+41%
year-on-year) and contributing revenue of US$352 million, which represented 27% of the airline’s passenger revenue.
During this period, a new partnership agreement was signed
with Philippine Airlines (PAL), covering codeshare flights,
loyalty programs, airport lounges, cargo, and coordination of
Etihad Airways also expanded
existing codeshares with partners such as Air New Zealand, KLM
Royal Dutch Airlines, Korean Air and S7 Airlines.
Etihad Airways and Alitalia signed a transaction implementation
agreement in August 2014, which, subject to regulatory approval, will result in a €1,758 million investment to build a
reinvigorated Alitalia. This includes a €560 million investment by
Etihad Airways to acquire a 49% shareholding in Alitalia, a 75%
interest in Alitalia’s loyalty company, which operates the MilleMiglia frequent flier program, and five pairs of slots at
London’s Heathrow Airport, which will be leased back to Alitalia
on an arm’s length basis. Etihad Airways’ investment will be
complemented by a €300 million investment from existing core
Alitalia shareholders, up to €598 million in financial
restructuring of debt, and €300 million of new loan facilities.
Etihad Airways’ passenger carrying capacity, measured
in Available Seat Kilometres (ASK), was 22 billion by the end of
Q3 2014, an increase of 16% over the same period last year. The
airline’s fleet expanded to 105 aircraft, with three aircraft
delivered in the third quarter.
An additional five
aircraft are scheduled to be received in the final quarter of
2014, including Etihad Airways’ first Airbus A380 and Boeing 787,
which commence operations in December and will feature brand new
First, Business and Economy Class products. The A380 will also
The Residence by Etihad, a three-room private cabin that
boasts a living room, separate double bedroom and ensuite shower,
together with an exclusive, personal butler service.
Etihad Airways last month unveiled a new livery design, which
will be introduced across its fleet, starting with the A380 and
B787. The livery is inspired by traditional Emirati design
patterns, the landscapes of the desert, and geometric shapes found
in the modern architecture of Abu Dhabi.
third quarter of 2014, Etihad Cargo optimised scheduling and
connections globally, launched new freighter services to Moscow
and Hanoi, increased frequencies on its existing freighter route
to Milan, and deployed a new
A330-200 Freighter. A specialist
equine service was also unveiled for the transportation of horses
and other similar species by air. The ‘SkyStables’ service is
being rolled-out across Etihad Cargo’s scheduled network of 44
freighter destinations, with personalised charter services
available to other cities around the world.
revenue was US$284 million in the third quarter of 2014, a
year-on-year increase of 16%. Etihad Cargo remains on track to become a billion dollar business in 2014, having reported US$804
million in revenue during the first three quarters of the year.
Etihad Airways’ workforce grew to 22,886 employees
by the end of the third quarter, up 38% year-on-year. Part of this
significant increase can be attributed to the airline’s
acquisition of Abu Dhabi Aircraft Technologies LLC (ADAT) from Mubadala earlier this year.
Within the core
airline, 1,716 employees are UAE nationals, 28% more than the same
period in 2013, and Emiratis are the number one nationality group
at manager level. Last month, Etihad Airways announced plans to
establish a dedicated Revenue Accounting Centre of Excellence in
Al Ain, which will create job opportunities for more than 1,000
Emiratis over the next three years and create long-term economic
value for the Emirate of Abu Dhabi.
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