Wednesday 18 October 2017

Etihad's turnover soars to record €1bn in July-Sept

Colm Kelpie

Colm Kelpie

TURNOVER at Etihad Airways was up 19pc to a record $1.3bn (€1bn) for the three months of July, August and September.

The figure reflects a 23pc surge in passengers travelling with the Abu-Dhabi based airline to 2.79 million in the quarter. The company said it is on track to carry 10 million passengers this year.

It comes as Etihad and Air France-KLM announced a code-share in the first phase of a new strategic partnership.

The move will see the two carriers offering joint codes on destinations in Europe, the Middle East, Asia and Australia.

Etihad president and chief executive James Hogan said the airline remained confident of full-year profitability.

"Our third quarter saw continued progress across the business, with all key indicators showing strong performance and we remain confident of delivering full-year profitability based on current market conditions," he said.

The airline said revenues were boosted by codeshare and partner revenues, which jumped 51pc to $182m (€140.3m).

The United Arab Emirates flag carrier's new codeshare with Air France-KLM is the first phase of a larger strategic partnership beginning on October 28.

Collectively, the two airlines expect to carry 85 million passengers this year.

The deal increases Etihad's network from 315 destinations to 321.

Cargo

Cargo revenues were also significantly ahead of last year, up 6pc to $181.6m (€140m)

Revenues from codeshare partners represented 18pc of Etihad's total passenger revenue in the quarter.

A significant contribution to the turnover came from airberlin, in which Etihad holds a 29.21pc stake.

The codeshare agreement between the two carriers delivered $51m (€39.3m) in the year to date. Etihad also has stakes in Air Seychelles and Virgin Australia.

During the three months, codeshare and interline agreements were signed with Aer Lingus, of which it owns just under 3pc, China Eastern Airlines and RAK Airways.

Initially, the agreement between Etihad Airways and Air France-KLM will see the Abu Dhabi-based carrier's EY code placed on Air France flights between Paris Charles de Gaulle airport and Bordeaux, Copenhagen, Madrid, Nice and Toulouse.

The EY code will also be placed on KLM flights between Amsterdam and Abu Dhabi, Billund, Cardiff, Newcastle, Oslo and Stavanger.

Air France will initially place its AF code on Etihad Airways flights between Abu Dhabi and the Seychelles, the Maldives, Colombo, Dhaka, Kathmandu and Islamabad.

KLM will initially place its KL code on Etihad Airways flights between Abu Dhabi and Sydney, Melbourne, Islamabad, Colombo and Lahore.

Irish Independent

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