Etihad set for underlying profit in 2010

Etihad set for underlying profit in 2010

Etihad and other Gulf carriers have boasted fast growth and profits as traditional European and U.S. airlines limp out of recession.

November 26, 2010 12:08 by Reuters

Abu Dhabi airline Etihad will make an underlying profit in 2010, its chief executive said, in a further sign of rapid growth among Gulf airlines.

The six-year old national carrier of the world’s third largest oil exporter said its earnings before interest, taxation, depreciation, amortisation and rentals (EBITDAR) would push it towards full profitability in coming years.

“Our next goal is full break-even in 2011, leading to sustainable profitability from 2012 onwards,” James Hogan said at a financial roadshow in London and in comments released in a statement on Friday.

Etihad and other Gulf carriers, such as Emirates and Qatar Airlines, have boasted fast growth and profits as traditional European and U.S. airlines limp out of recession.

Qatar Airways and Emirates clashed with major European airlines in a row over market access and airplane financing this week, rejecting claims Gulf-based carriers were propped up by oil wealth and subsidies.

(Reporting by Erika Solomon; Editing by Dan Lalor)