ETIHAD AIRWAYS, the Middle East’s third largest carrier, posted a first annual profit and said it was mulling further purchases following an investment in Air Berlin, with Aer Lingus being monitored.
Abu Dhabi-based Etihad is “looking at a range of carriers” and would seriously consider one or two global opportunities to help feed its network, chief executive James Hogan said, adding that there were no advanced talks.
“We don’t enter an agreement to bail somebody out, we enter into an agreement to improve our top line and revenue and take out more cost,” Mr Hogan said. “With Aer Lingus we have looked at top line, but haven’t entered into any advanced negotiations.”
Etihad posted its first annual profit after a surge in passenger numbers boosted sales by more than one-third. The carrier reported net income of $14 million (€10.5 million), exceeding a target of breaking even, with sales 36 per cent higher at $4.1 billion.
A cost-reduction programme shaved $187 million from expenses, the company said.
“We will aim for strong growth again in 2012, in spite of the tough global economic environment,” Mr Hogan said.
The state-owned carrier is targeting a passenger total of 10 million, 1.8 million more than in 2011, with “a corresponding increase in profits”.
Etihad’s most important growth driver this year will be its increased 29.2 per cent stake in Air Berlin, acquired in December for $350 million in equity financing and funds for aircraft, Mr Hogan said, with the German discount carrier likely to contribute $50 million in revenue.
The Gulf company also agreed last month to take a 40 per cent holding in Air Seychelles Ltd via a $45 million accord, tapping high-end tourist flights.
Etihad hedged more than 80 per cent of its fuel costs last year, helping to protect it from volatility in oil prices, and has a 75 per cent hedging plan in place for 2012.
The airline, which competes in the Gulf with Dubai-based Emirates, the world’s biggest airline, and Doha’s Qatar Airways, has been expanding its global presence via new routes and aircraft, as well as buying stakes in other airlines. – (Bloomberg)