Etihad strategy paying off

Etihad Airways has reported a 31% rise in revenues in the second quarter of 2012 — increasing to US$1.25 billion, compared to US$957 million during the same period in 2011. As a result increased overall capacity and improved seat factors, revenues for the first half of 2012 are up 30% to US$2.24 billion. The record results were boosted by the airline’s growing network of codeshares and strategic partnerships which together fed 800,000 passengers into Etihad Airways’ network in the last six months, contributing US$281 million. During the quarter, Etihad Airways took minority equity stakes in Aer Lingus and in Virgin Australia, adding to its minority shareholdings in airberlin and Air Seychelles. Together these five airlines carried 72 million passengers on 376 aircraft in 2011, generating combined revenues of more than US$14 billion. James Hogan, president and CEO of Etihad Airways said: “These results are an endorsement of our strategy, which has seen us widen and deepen our partnerships in addition to continued focus on our organic growth plan. In a quarter when many airlines have seen demand softening, we have been able to add more passengers than ever before, with growth outstripping our capacity increases.” In June, IATA reported the recent fall in oil prices had been offset by the continued and deepening European sovereign debt crisis which had led markets to expect a further deterioration and damage to economic growth. However, Etihad’s Hogan said that the airline was on track for a successful full year performance, despite the challenging market conditions. “This continues to be a tough operating environment for all airlines. Our strategies allow us to drive quality revenue and we remain focused and on track to deliver profitability for the full year, for the second year running.” Go to http://www.etihadairways.com for more.