Etihad Airways, the national carrier of the United Arab Emirates, today reported a full year earnings before interest, tax (EBIT) of $137 million, on revenues of $4.1 billion, up 36% from $2.98 billion in 2010.

The results included earnings before interest, tax, depreciation, amortization and rentals (EBITDAR) of $648 million, with a net profit of $14 million. The record result exceeded the airline’s 2011 target, which was to break even.

James Hogan, President and CEO, said: “This is an historic day for Etihad Airways and an amazing achievement for an airline just eight years old.
 
“Five years ago we said we would be profitable by 2011.  Despite the global financial crisis, continued high oil prices, regional instability and natural disasters, we have delivered,” he added.

The airline will aim for strong growth again in 2012, in spite of the tough global economic environment, with a passenger traffic target of 10 million and a corresponding increase in profits, Hogan said.

Hogan said Etihad Airways’ successful partnership strategy intensified, with its first equity investment in another carrier - airberlin, Europe’s sixth largest airline, which was announced in December 2011.
 
“This was a game changing move for Etihad Airways, adding 157 destinations and giving us access to 35 million new passengers. The airberlin deal will be our most important catalyst for growth in 2012. It has given us instant access to Europe’s largest travel market, and will have a major impact on revenues in 2012, with an expected contribution of up to $50 million,” he noted.
 
“And of course, 2011 marked the first full year of Etihad Airways’ strategic partnership with Virgin Australia, which offers 45 destinations in Australia and the Pacific, and boosted revenue by 700% over what we achieved with our previous Australian airline partner.

“We will continue to look at opportunities in 2012. Already this year we have announced a second equity investment, in Air Seychelles, which is an important step towards growing our operations in the increasingly popular leisure markets of the Indian Ocean and Africa.”

Etihad Airways ordered 100 new aircraft and 105 options and purchase rights at the 2008 Farnborough Air Show.  This gives flexibility in its network growth, enabling it to meet passenger demand over the next 10 years.  To-date, Etihad Airways has raised $5 billion in external fleet financing, through a portfolio of 41 different financial institutions.