Go Back  PPRuNe Forums > PPRuNe Worldwide > Middle East
Reload this Page >

Etihad posts first net profit

Middle East Many expats still flying in Knoteetingham. Regional issues can be discussed here.

Etihad posts first net profit

Old 13th Feb 2012, 17:24
  #1 (permalink)  
Thread Starter
 
Join Date: Jun 2007
Location: i'm in the parking lot
Posts: 249
Likes: 0
Received 0 Likes on 0 Posts
Etihad posts first net profit

from aviationweek.com

Etihad Airways turned a net profit for the first time in its eight year history, reporting 2011 net earnings of $14 million and an operating profit of $137 million on a strong increase in sales.
CEO James Hogan says the airline has reached a new phase of its development, a period of being established as a self-sustainable business following the initial startup phase, the putting in place of processes and strategies and acquiring a major aircraft fleet. The strategy was about “organic growth,” Hogan says, but he is also still looking at acquisitions “where it makes sense.” Etihad bought a 29% stake in Air Berlin last December and a 40% in Air Seychelles in January. The airline also was rumored to be interested in Virgin Atlantic and/or Aer Lingus, which Hogan was unwilling to confirm.
Etihad’s revenues increased by more than $1 billion to $4.1 billion last year. The airline boosted capacity by 15.8%, but still managed to improve yields by 7%. Passenger numbers were up 17% at 8.3 million, and load factor came in at 75.8%, up 1.8 percentage points from 2010.
The number of aircraft in its fleet increased by seven to 64. The airline plans to take delivery of at least 100 aircraft in the next 10 years. It also has 105 options and purchase rights.
Unit costs in 2011 were down 4.6%, excluding fuel, and declined 16.6% in the past two years, representing annual savings of $187 million.
According to Hogan, Etihad has no plans to join one of the global alliances at this point, and the Abu Dhabi government has not given any indications about a possible initial public offering.
Hogan expects revenues in 2012 to exceed $5 billion and sees a further improvement in profitability. Etihad has hedged 77% of its fuel needs for this year, 50% for 2013 and 25% for 2014. “We are one of the better hedged airlines in the world,” he believes.
The Turtle is offline  
Old 14th Feb 2012, 07:35
  #2 (permalink)  
 
Join Date: May 2002
Location: Kiwiland
Posts: 314
Received 0 Likes on 0 Posts
Some people wont believe anything.......

Oh I think its genuine for two reasons...

The AD finance owners aint stupid. They now have 70% of EK too.

They wouldnt have paid out 4 weeks bonus to all staff unless it was real!
goeasy is offline  
Old 14th Feb 2012, 09:05
  #3 (permalink)  
 
Join Date: Jun 2001
Posts: 149
Likes: 0
Received 0 Likes on 0 Posts
I am sure it is legitimate. However, it was also reported that the fuel hedging strategy contributed over US$300M to the bottom line. So a Net Profit of US$14M would have been a loss of US$286M if it hadn't been for a bet that came off.

Good business acumen? Maybe. But if I recall correctly Cathay and others had big hedging gains in 07/08 followed by massive losses in 09 when the oil price plummeted.

So I guess time will tell if they can continue to out gamble the market and whether they can make a profit without a little gambling action on the side. I certainly hope so!
sandpit is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Thread Tools
Search this Thread

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service

Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.