Etihad's Passenger, Cargo Revenues Rise

October 7, 2012

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Etihad Airways reported a 19 percent rise in third quarter revenue on Sunday and said it will look to extend its geographical reach to India and other Asian markets.

The Abu Dhabi flag carrier's Q3 revenue of USD$1.3 billion was a 19 percent rise year-on-year. Passenger revenue was boosted by code sharing and partnerships - revenues from these two categories jumped 51 per cent to USD$182 million.

Etihad, which has expanded globally through stake purchases in carriers such as Air Berlin and Virgin Australia, will look to extend its geographical reach to India and other Asian markets.

The Gulf carrier, in competition with regional rivals Emirates and Qatar Airways, will also look to secure more airline stakes, its chief executive said in an interview on Sunday.

"Possibly one or two (partnerships) more and that will be it," said James Hogan when asked about plans to pick up more stakes in other airlines.

Hogan said after its push into Australia with a 10 percent stake in Virgin Australia and Europe with 29.2 percent in Air Berlin and 3 percent in Aer Lingus, the airline will now look for growth in Asia.

"We are very clear that India and Asia represent an opportunity," said Hogan.

He said the airline has been receiving offers from Indian carriers.

"We get a number of options. It has to meet our formula. We are in no rush. We have to make sure that it makes sense from a network, operation and revenue perspective."

India decided to allow foreign airlines to buy stakes of up to 40 percent in local carriers last month, a move that came as a lifeline to the country's debt-ridden carriers.

Ailing Kingfisher Airlines, SpiceJet and Jet Airways are all said to be on the lookout for strategic investors.

Dubai's Emirates has denied plans to buy a stake in any Indian carrier.

"Over the next 7 to 8 years we are taking another 100 aircraft. So we will also continue to grow organically and continue with our code share agreements," Hogan said.

The airline's 38 partners created a combined network of 315 destinations, more than any other Middle Eastern carrier, Etihad said.

Air Berlin made a significant contribution to revenue, it added. The two airlines' code sharing and joint marketing agreements have delivered USD$51 million in revenue to Etihad in the year-to-date, surpassing initial full-year estimates.

Hogan said more opportunities may also emerge in Europe after the Air Berlin stake purchase.

Last year, Etihad carried 8.3 million passengers through its hub in Abu Dhabi. It is on course to carry 10 million in 2012.

Hogan said it is on track to deliver full-year profitability. However, no details of third-quarter profits were provided.

Cargo revenues in the quarter grew 6 percent to USD$181 million.