17.6m passengers carried by Abu Dhabi-based Etihad Airways in 2015, up 19% from 2014.
Airline’s revenues hit $19b; passengers surge 19% to 17.6 million
abu dhabi — Etihad Airways net profit rose 41.1 per cent year –onyear to $103 million, its strongest performance to date.
The airways revenues surged 19.47 per cent to $9.02 billion in 2015 from $7.6 billion in the 2014.
James Hogan, Etihad Airways President and Chief Executive Officer, said: “Our mandate is to build a sustainably profitable airline. A fifth year of net profits, with our best annual financial performance to date, shows that we are delivering against that goal.
“Our profitability clearly demonstrates the success of our business strategy, based on organic growth boosted by our partnerships. As well as operating profitability, we are building enterprise value across the airline and its many additional business streams”, the CEO said.
Etihad Airways carried a total of 17.6 million passengers in 2015, an increase of 18.9 per cent yearon-year. The growth in passenger volume continued to exceed Etihad Airways’ capacity increase and outperformed regional market growth, which has seen a decline in load factors since mid-2014.
Commenting on the strong performance, Saj Ahmad, chief analyst at Strategic Aero Research, said: “Etihad has again demonstrated that it’s dual organic and inorganic growth strategy is paying off with its fifth consecutive year of profitability.”
“With a rise in revenues to over $9 billion, the airline has managed to draw in more passengers on its new and fuel efficient fleet while reaping the benefit of lower fuel prices as well, making its fares more flexible and competitive,” he said.
“Passenger growth equally demonstrates that demand outside of key hubs like Dubai and Doha are not negatively impacting Abu Dhabi — there is ample demand to feed all these big traffic hubs.”
In total, the airline operated 97,400 flights covering 467 million kilometres. The average network-wide seat load factor was
Our profitability clearly demonstrates the success of our business strategy, based on organic growth boosted by our partnerships
James Hogan, President and Chief Executive Officer of Etihad Airways
79.4 per cent for 2015, compared with 79.2 per cent in 2014.
Etihad Airways’ fleet increased by 11 aircraft to a total of 121 at year end.
Partnership strategy delivered five million passengers and $1.4 billion in direct revenues, as well as significant cost synergies.
Etihad Airways’ partnership strategy, based on almost 50 codeshare agreements and its strategic minority investments in selected airlines, remained a key driver of its growth in 2015.
Etihad Airways now offers a combined passenger and cargo network of nearly 600 destinations through its 197 interline and 49 code-share partnerships.
The strategy has contributed revenues of $1.4 billion, an increase of 22.1 per cent year-on-year — and more than five million passengers onto Etihad Airways’ flights, apart from cost savings and business synergies.
Hogan said the airline’s return on its equity investments into the seven airlines was many times more than the money it had spent.
“For an investment smaller than the cost of three new aircraft, we have been able to build our global network, attract five million new customers and $1.4 billion of revenues, and share massive cost synergies. That’s smart business.
“This is a two-pronged approach. From a strategic level, we are looking for the equity partners to bring network connectivity, generate additional revenues and create economies of scale. All our partners are delivering on this level.
“Each partner then has a P&L goal, which is the responsibility of its own management and boards of directors. Many of these, such as Air Serbia, Air Seychelles, Jet Airways and Virgin Australia, are now delivering on this level too.
“Even with an investment such as airberlin, where it has taken longer than expected for the airline to reach sustainable profitability, we are seeing incredibly strong returns directly into our business, far in excess of our original expectations. We have already received more than $500 million in direct revenues to Etihad Airways and airberlin today delivers more than $150 million a year in direct revenues, as well as wideranging cost synergies which have already reached more than $100 million. In addition, the airberlin relationship is delivering a contribution of more than $630 million a year to the Abu Dhabi economy. This is why we remain committed to the restructuring of that business as it moves forward.”