São Paulo – Etihad Airlines, a state-owned airline in the United Arab Emirates, disclosed its first net profit, in 2011, on Thursday (9). The company has made US$ 14 million since it started operating, eight years ago. In January, on announcing a record number of passengers transported in 2011, 8.29 million, the company said it was finally in the black, despite not informing by how much.
Etihad chairman James Hogan recalled that five years ago the airline had promised to become profitable in 2011. “Despite the global financial crisis, continued high oil prices, regional instability and natural disasters, we have delivered [profit]. The mandate from our shareholder was to create an airline that is best in class, operates to the highest safety standards, and makes money – and we have achieved this mandate,” he said.
The company came into the black, according to Hogan, due to cost cuts and greater operation. The costs per available seat kilometre (CASK), excluding fuel, for example, dropped 4.6% in 2011 and 16.6% over the last two years, which represented an economy of US$ 187 million. In December 2011, the company invested in low cost airline Air Berlin, which opened new markets, and established a partnership with Virgin Australia to have access to the Australian and Pacific market.
One of the company’s targets for 2012 is to transport 10 million passengers and increase the number of destinations served. Etihad currently flies to 83 passenger and cargo destinations. Excluding markets covered by partners, by April, Etihad should have inaugurated regular services to Tripoli, Shanghai and Nairobi. In July, the company should inaugurate a service to Lagos.
*Translated by Mark Ament
