Etihad posts best ever results
Etihad Airways has posted its largest ever net profit of US$ 73 million for 2014, up 52.1% over the previous year.
The record performance, which marked the airline’s fourth consecutive year of net profitability, also saw earnings before interest and tax up 32.5% to US$ 257 million.
President and CEO James Hogan 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.
"Our performance in 2014 has cemented Etihad Airways’ position as a best-in-class, profitable and self-sustaining international airline. We have continued to grow, not just in size, reputation and performance, but also in maturity, evolving from an airline to a diverse global aviation and tourism group. This has been achieved through a unique strategy that combines industry-leading organic growth with wide-ranging partnerships and minority equity investments in other airlines around the world."
Etihad Airways carried a total of 14.8 million passengers in 2014, an increase of 22.3% year-on-year, which outstripped its increase in capacity. Its average network-wide load factor rose from 78% to 79.2% as a result.
The airline said a key driver of its growth in 2014 was its partnership strategy, based on wide-ranging codeshares, and its 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 said. "It has boosted sales and marketing opportunities in key markets, as well as allowing significant business synergies and cost savings."
This strategy delivered revenues of US$ 1.1 billion in 2014, an increase of 37.7%, and represented 24 per cent of Etihad’s total passenger revenues.
The Abu Dhabi-based airline owns minority stakes in airberlin, Air Seychelles, Aer Lingus, Jet Airways and Virgin Australia.
In 2014, it received final approval for its 49% investment in Air Serbia and it paid €560 million for 49% share of New Alitalia and75% in Alitalia Loyalty, which operates the MilleMiglia frequent flier program, and the future purchase of five pairs of London Heathrow Airport slots for lease back to Alitalia.
It also launched new codeshare agreements with Air Europa, jetBlue, Philippine Airlines, GOL, SAS, Hong Kong Airlines and Aerolineas Argentinas, and existing codeshares with South African Airways, Alitalia and Jet Airways were significantly expanded.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Qatar Airways offers flexible payment options for European travellers
Phocuswright reveals the world's largest travel markets in volume in 2025
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Skyscanner reveals major travel trends 2026 at ITB Asia
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists