Abu Dhabi based Etihad Airways reported first quarter revenues of $770 million, up 21.2% compared to $635 million in Q1 last year, attributable to strong performances in both passenger and cargo traffic.

Coupled with a 5.9% reduction in costs per available seat kilometer, this delivered positive Ebitdar (earnings before interest, tax, depreciation, amortization and rentals) in the quarter for the first time.

Passenger revenues rose 15% on the back of a 10.6% growth in passenger numbers, to 1,854,392. Seat factor fell slightly to 72.7% from 75.1% in Q1 last year, due to the impact of Middle East unrest and the Japanese earthquake.

Etihad’s cargo revenues grew by 44% year-on-year on a capacity growth of 22% for the quarter, with March representing Etihad Crystal Cargo’s best month ever in terms of revenues, number of shipments and tonnage carried.

The results mark continued progress towards the airline’s goal of break-even in 2011 and profitability in 2012.

“Our revenues continue to grow faster than our passenger numbers and, thanks to our robust cost controls, we are seeing a real benefit in our overall performance. This marks the first time we have delivered positive Ebitdar in Q1,” said James Hogan, Etihad Airways’ Chief Executive Officer.

“Looking ahead, fuel prices will be a major challenge for the airline industry this year but I am glad to report that Etihad has hedged more than 75% of its fuel requirements for 2011,” he added.