Etihad Airways records a leap in net profit of 200 percent to $42 million in 2012. ETIHAD Airways, the national carrier of the United Arab Emirates, is hosting 450 representatives from global leasing, financial markets and banking communities at financial roadshows in New York and London. President and Chief Executive Officer of Etihad Airways James Hogan said the airline had been undertaking the annual financial roadshows since 2008 to brief major financial institutions on its strategy and performance. “We are developing enduring relationships in a competitive environment so that we can continue to build a resilient and diversified access to the financial markets. As part of our briefings we are speaking to institutions from many markets offering diverse products and solutions, so that we know what's on offer and so that we can explain our business and finance strategy in this phase of Etihad Airways' rapid and sustained growth.” “It is important that financial institutions around the world understand our story and are comfortable investing in Etihad Airways. This is how we take them on the journey,” Hogan said. Etihad Airways recorded a leap in net profit of 200 percent to $42 million in 2012 and a rise of 16 percent in EBITDAR (earnings before interest, tax, depreciation, amortization and rentals) to $753 million. Etihad Airways has attracted support from more than 60 institutions globally, which now provide more than $7.1 billion in cumulative funding for the airline's ongoing expansion. The airline works with banks from across the globe representing every major market in Asia, the Gulf states, Europe and North America. “Our bankers understand and trust what we are doing and share the vision we have to be the best airline in the world,” Hogan said. Etihad Airways has been successful in building the first ‘equity alliance', with investments in Air Seychelles (40 percent), airberlin (29.21 percent), Virgin Australia (9 percent) and Aer Lingus (2.987 percent). The strategy continues to build momentum in Etihad Airways' business model, which is outside the thinking of traditional, legacy alliances. In 2012, for example, partner airlines contributed approximately 20 percent of passenger revenue. Fuel, however, continues to be the most significant cost for the airline, accounting for around 40 percent of total operating costs, before fuel hedging gains. Actively hedging 80 percent of fuel costs with 22 financial institutions minimized the impact of the increase in global oil prices during 2012. Etihad Airways currently has 76 percent of its fuel costs hedged for 2013, 44 percent for 2014, and 19 percent for 2015. Hogan further said Etihad Airways was committed to a diversified finance strategy, which included traditional and emerging finance mechanisms across financial institutions in different regions. – SG
