Etihad Airways first quarter revenues rise by 27 per cent

Etihad Airways, which owns a 4.11 per cent stake in Aer Lingus, saw revenues jump 27 per cent to $1.4 billion during the first three months of 2014, the company reported on Tuesday.

The airline said 3.2 million passengers travelled with it during the first quarter. This marks a rise of more than 14 per cent on the 2.8 million passengers for the same period a year earlier.

Organic growth was supported by the development of codeshare and equity partnerships, which delivered 678,000 passengers onto Etihad Airways flights, 25 per cent higher than the same quarter last year. Revenue from codeshare and equity partners rose 23 per cent to $223 million, representing 22 per cent of total revenue.

Etihad had 95 destinations operational by the end of the first quarter, an increase of six compared to the same period in 2013.

The airline’s fleet expanded to 95 aircraft in the first quarter of 2014, marking an increase of 30 per cent in the fleet size over the same period last year.

Its cargo division carried 127,821 tonnes of freight and mail during the three-month period under review. The airline’s cargo revenues rose 26 per cent to $243 million.

Etihad is the third-largest airline operating out of the Persian Gulf behind Emirates and Qatar Airways, but it is the fastest growing.

"Although the global airline industry has faced challenges such as higher-than-expected fuel prices and fierce competition in key international markets during the first quarter of 2014, we have continued to outperform the passenger and cargo markets, and raise the bar even further for Etihad Airways," said James Hogan, the airline's president and chief executive.

“Our strong performance highlights the continued success of Etihad Airways’ strategic master plan, which focuses on the three fundamental pillars of organic network growth, codeshare partnerships and minority equity investments in other airlines around the world. This unique strategy, and the investments we have made in product, service and infrastructure, means that Etihad Airways is positioned strongly for top-line growth and bottom-line delivery in 2014,” he added.

In addition to its stake in Aer Lingus, Etihad also holds equity investments in airberlin, Air Seychelles, Virgin Australia, Air Serbia and Jet Airways, and is seeking regulatory approval to invest in Swiss-based regional carrier Darwin Airlines.