Etihad reports spike in Q3 revenue amidst global airline slump

The Abu Dhabi-based carrier reported that its passenger numbers climbed 18% to 2.25 million, while its seat factor increased to 80.7%, the highest in any quarter since the airline began operations in late 2003.

The carrier said markets in the Americas and Asia-Pacific were key to its strong performance. "Despite the continuing challenges of high fuel prices and economic downturn in many of the markets in which Etihad operates, we are seeing strong growth in all our key commercial indicators," said the carrier's CEO James Hogan.

He said the carrier is on pace to break even in 2011. Its stated goal is to make a profit in 2012.

Many airlines continue to struggle

The carrier's strong performance is in contrast to the struggles that many carriers are facing across the world. Last month the International Air Transport Association (IATA) predicted that airlines suffer a fall in total industry profits from $6.9bn this year to $4.9bn next year.

More recently, IATA reported that growth in passenger traffic weakened globally in August amidst a drop in business and consumer confidence. "We are in a time now of declining profitability," said IATA's Director General and CEO Tony Tyler. "The latest traffic figures would reinforce this and possibly point to risks, if anything, being on the downside."

"The industry has shifted gears downward," Tyler added. "The pace of growth in passenger markets has dipped and the freight business is now shrinking at a faster pace. With business and consumer confidence continuing to slump globally there is not a lot of optimism for improved conditions any time soon."

Etihad adds new routes

Etihad, which currently flies to 86 cities, will begin flying to six new destinations in the next six months: the Maldives (from November 1), the Seychelles (November 2), Chengdu in China (December 15), Düsseldorf (December 16), Shanghai (March 1, 2012) and Nairobi (April 1, 2012).

The carrier said it has added six aircraft to its fleet in the last 12 months, enabling the airline to build greater depth into its schedule and increase weekly frequencies to key markets including Paris, Manchester, Milan, Geneva, Brussels, Bangalore, and Manila.

"Next year we take delivery of another seven passenger aircraft - four B777-300ER aircraft, plus three A320-200s - so the careful, strategic expansion of our global network will continue apace," Hogan said.

Etihad Crystal Cargo also saw its numbers rise in Q3, with revenue up $37m to $168m, supported by a 16% year-on-year growth in tonnage (from 66,916 to 77,623 tonnes) and a 10% year-on-year increase in average yields.

Wireless internet to be added on select routes

In a bid to further boost demand, Etihad announced last month that it will provide onboard wireless internet on selected routes to Europe before the end of the year.

Speaking at the World Broadband Forum in Paris, Hogan said: "I can tell you that Etihad will have two aircraft with operational onboard internet by December this year, and five aircraft by March, 2012.

"Three of those five aircraft will be Airbus A330-300s, which will operate between Abu Dhabi and cities like Frankfurt, Geneva, London, Munich and Paris. And we are right at the point now of settling on a fleet-wide connectivity solution for the years to come."