Etihad Airways achieved its strongest financial results to date in 2014, posting a net profit of USD 73 million on total revenues of USD 7.6 billion, up 52.1 per cent and 26.7 per cent respectively over the previous year.
The record performance, which marked Etihad Airways‘ fourth consecutive year of net profitability, also saw earnings before interest and tax (EBIT) up 32.5 per cent to USS 257 million. Earnings before interest, tax, depreciation, amortization and rentals (EBITDAR) were up 16.2 per cent to USS 1.1 billion, representing a 15 per cent margin on total revenues.
Etihad Airways’ financial statements are audited by KPMG and are in accordance with International Financial Reporting Standards.
James Hogan, President and Chief Executive Officer of Etihad Airways, said: “Our shareholder has set a clear commercial mandate for this business and we continue to deliver against that mandate. 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.”
Etihad Airways carried a total of 14.8 million passengers in 2014, an increase of 22.3 per cent year-on-year. Revenue Passenger Kilometers – measuring passenger journeys – increased by 23.6 per cent to 68.6 billion.
Passenger numbers were strengthened by the continued enhancement of Etihad Airways’ global network last year. The airline launched services to 10 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 per cent, compared to 78.0 per cent in 2013.
A key driver of Etihad Airways’ growth in 2014 was its partnership strategy, based on wide-ranging code-shares and its unique approach of minority equity investments in strategically important airlines. This has accelerated network growth, giving Etihad Airways the largest route network of any Middle Eastern carrier, reaching more than 500 destinations. It has boosted sales and marketing opportunities in key markets, as well as allowing significant business synergies and cost savings.
Expanding fleet
Etihad Airways’ fleet consisted of 110 aircraft at the end of 2014 (up 23.6 per cent 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 Airways 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).