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Etihad Airways achieved its strongest financial results to date, posting a net profit of $73 mln in 2014 on total revenues of $7.6 bln, up 52.1% and 26.7%, respectively over the previous year.
The record performance of the national airline of the United Arab Emirates, which marked it’s fourth consecutive year of net profits, also saw earnings before interest and tax (EBIT) up 32.5% to $257 mln and earnings before interest, tax, depreciation, amortisation and rentals (EBITDAR) up 16.2% to $1.1 bln, representing a 15% margin on total revenues.
“Our focus is on sustainable profitability and our fourth year of net profits, at a time when we continue to invest in the new routes, new aircraft, new product and new infrastructure needed to compete effectively, shows we are serious about that goal,” said James Hogan, President and CEO of Etihad.
“We have continued to grow, not just in size, reputation and performance, but also in maturity, evolving from an airline to a diverse global aviation and tourism group through organic growth, partnerships and minority investments in other airlines (49% in Air Serbia and 49% in New Alitalia).”
Etihad Airways carried a total of 14.8 mln passengers in 2014, up 22.3% year-on-year. Revenue passenger kilometres (RPKs) increased by 23.6% to 68.6 bln (55.5 bln), while available seat kilometres (ASKs) grew by 21.8% to 86.6 bln (71.1 bln). The growth in passenger demand and revenue over the 12-month period continued to outstrip Etihad’s capacity increase, highlighting the strength of its long-term growth strategy.
The airline launched services to ten new destinations in eight countries – Los Angeles, Dallas, San Francisco, Rome, Zurich, Medina, Yerevan, Jaipur, Phuket and Perth – and increased capacity on 23 existing routes. By the end of the year, the average network-wide seat load factor was 79.2%, compared to 78.0% in 2013, reaching more than 500 destinations.
Etihad’s cargo division also delivered a standout performance in 2014, becoming a billion dollar company one year ahead of schedule. Cargo revenues were up 19.2% to $1.1 bln, with freight and mail volumes rising from 487,000 to 569,000 tonnes.
Etihad Airways’ fleet consisted of 110 aircraft at the end of 2014 (up 23.6% year-on-year), with an average age of 5.5 years, one of the youngest in the sky. The airline took delivery of its first Airbus A380 and its first Boeing 787-9 in December, with both state-of-the-art aircraft offering new industry leading standards in cabin interiors, together with considerable fuel efficiency and environmental improvements.
An additional nine Airbus aircraft (two A330-200s, three A321s, three A320s and one A330-200F) and six Boeing aircraft (one 777-300ER, five 777-200LRs) were received in 2014, while further leased capacity was also added to enhance the airline’s rapid growth.
More than 200 aircraft are currently on firm order, together with options and purchase rights for 66 additional aircraft. In 2015, Etihad plans to introduce 16 aircraft into its fleet, including nine wide-bodies (one Boeing 777-300ER, four Boeing 787 Dreamliners and four Airbus A380s) and seven narrow-body Airbus A320 family aircraft (six A321s and one A320).
