Abu Dhabi's Etihad Posts 52% Profit Jump

By Rory Jones

DUBAI--Abu Dhabi's Etihad Airways on Thursday said full-year 2014 net profit increased 52% as it flew significantly more passengers and launched new routes across the U.S., Europe and Asia, despite facing challenges in some markets.

Net profit rose to $73 million last year from $48 million a year earlier, on revenue of $7.6 billion, the company said.

Etihad said it flew 22% more passengers at 14.8 million last year while its partnership program with other airlines around the world, such as Alitalia, Virgin Australia Ltd. (VAH.AU) and Air Berlin PLC (AB1.XE), added $1.1 billion to revenue.

Etihad said it added 21 new aircraft to run a total fleet of 110 Boeing Co. (BA) and Airbus Group NV (AIR.FR) jets.

The growth came despite facing "unprecedented external challenges" and a "rise in aggressive protectionist sentiment in Europe and the U.S.," Etihad Chief Executive James Hogan said.

The state-owned Abu Dhabi carrier has faced criticism this year from the three biggest U.S. carriers--Delta Air Lines Inc. (DAL), American Airlines Group Inc. (AAL) and United Continental Holdings Inc. (UAL). They claim Etihad and its Gulf peers Emirates Airline and Qatar Airways have received $42 billion in subsidies and unfair benefits since 2004, including about $17 billion for the Abu Dhabi airline. All three Gulf airlines deny the claims.

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