Etihad Airways reports 200% net profit increase in 2012

Etihad Airways' overall revenue has jumped from $4.1bn to $4.8bn Abu Dhabi's Etihad Airways has revealed a 200 percent rise in net profit in 2012 and a 17 percent increase in revenue. In results announced later than expected , Etihad posted a net income of $42 million for 2012, compared to $14 million in 2011 when it made its first ever profit. An official statement attributed the successful boost in revenue to passengers and cost control.
The flag carrier of the Emirati capital Abu Dhabi said revenue increased to $4.8 billion in 2012 compared to $4.1 billion the previous year.
The number of passengers grew a healthy 23 percent from 8.4 million in 2011 to 10.3 million in 2012, significantly boosted by Etihad's global partnerships which delivered more than $600 million in total revenue.
"This has been a game-changing year for Etihad Airways," James Hogan, the airline's president and chief executive officer said. "We 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," he added.
Etihad said it succeeded in building the first "equity alliance" with investments of 40 percent in Air Seychelles, 29.2 percent in airberlin, 9 percent in Virgin Australia and about 3 percent in Aer Lingus.
"We have taken great strides in building the industry's first equity alliance, which is contributing significant value to our business," Hogan said.
Earnings before interest and tax (EBIT) rose 24 percent to $170 million, while EBITDAR (earnings before interest, tax, depreciation, amortisation and rentals) rose to $753 million, up 16 percent, Etihad said.
Hogan said more than 50 institutions have provided around $6.8 billion in cumulative funding for the airline's ongoing expansion.
Planned fleet upgrades for 2013 include 14 aircraft, with 11 passenger aircraft deliveries and three freighter deliveries, Etihad said.
The orders are for nine wide-bodied Boeing and Airbus aircraft and five narrow-bodied Airbus aircraft. These will meet Etihad Airways' immediate growth requirements.
At the end of 2012, the company had 10,656 employees, 18 percent more than in 2011, hailing from more than 125 countries.
Etihad Airways, which began operations in 2003, serves 86 passenger and cargo destinations in the Middle East, Africa, Europe, Asia, Australia and US/South America.
It operates a fleet of 70 Airbus and Boeing aircraft, and over 90 aircraft on firm order, including 10 Airbus A380s, the world's largest passenger aircraft.