Etihad Airways Reports Record Q1

Etihad Airways has reported Q1 2011 revenues of US$ 770 million up 21.2% on Q1 2010 (US$ 635 million).

The record numbers are attributable to strong performances in both passenger and cargo traffic. Coupled with a 5.9% reduction in costs per available seat kilometre, this delivered positive EBITDAR (earnings before interest, tax, depreciation, amortisation and rentals) in the quarter for the first time.

The results mark continued progress towards the airline’s goal of break-even in 2011 and profitability in 2012.

Passenger revenues rose 15% on the back of a 10.6% growth in passenger numbers, to 1,854,392 while the seat factor fell slightly to 72.7% (Q1 2010: 75.1%) due to the impact of the unrest in the Middle East and the Japanese earthquake.

Etihad’s cargo revenues grew by 44% year on year on a capacity growth of 22% for the quarter, with March representing Etihad Crystal Cargo’s best month ever in terms of revenues, number of shipments and tonnage carried.

 “I am pleased to report more positive progress on our journey towards break-even and profitability. Our revenues continue to grow faster than our passenger numbers and, thanks to our robust cost controls, we are seeing a real benefit in our overall performance. This marks the first time we have delivered positive EBITDAR in Q1,” said James Hogan, Etihad Airways’ Chief Executive Officer. “These results were achieved despite significant challenges in our operating environment. This quarter saw unrest in a number of Middle East countries, which has clearly resulted in lower traffic into those markets. The earthquake in Japan in early March has also had an impact. Our ability to respond to these situations is a reflection of the growing maturity and underlying strength of the business.”.

Mr Hogan said the airline remained cautiously positive about the future, “Subject to the state of the overall global economy, we believe we are well positioned to continue our journey to profitability ... Fuel prices will be a major challenge for the airline industry this year but I am glad to report that Etihad has hedged more than 75% of its fuel requirements for 2011.”

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