Etihad Profits Soar by 52 Percent- What’s the Secret?

June 02, 2015


The year 2014 saw growth in profits and revenues for Abu Dhabi’s flag carrier- Etihad Airways. Currently locked in a verbal duel with the American carriers over subsidy issues, Etihad managed to put up an impressive show of profitability and increase in sales for 2014. Revenues moved up from USD 6 billions in 2013 to USD 7.6 billions in 2014 and the profits moved up by more than 52 percent to touch USD 73 millions over the same period. This was made possible since 22 percent more passengers flew the carrier in 2014 than in 2013. This impressive growth story has been the result of following measures and strategies of Etihad Airways:

  • Addition of more capacity in its own fleet
  • Growth in route network with inclusion of 10 new destinations in its network in 2014. As its own fleet grew, there was a growth in network as well as these carriers had to be utilized.
  • Partnership with other carriers to increase sales. This partnership was in the form of codeshare agreements as well as attaining minority equity stakes.
  • Use of large bodied long haul passenger airplanes to fly to cities in USA from its hub in Abu Dhabi. In a recent report, it has been outlined that Indians contribute to almost one third of the capacity that flies to USA on three main Gulf Carriers.






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