Etihad forecasts it will break even for the first time this year after seeing a jump in revenue in 2010.
The Abu Dhabi-based carrier is aiming for profitability in 2012, nine years after it was set up. The forecast follows a 29% leap in revenue in 2010 to $2.9 billion, outstripping capacity growth, which rose 19.5%.
Figures were also buoyed by a cost reduction programme which will save $320 million a year.
During 2010, passenger numbers topped seven million for the first time, an increase of 13%, although the introduction of seven new routes and six aircraft meant load factors grew only 0.5 percentage points to 74%.
Etihad chief executive James Hogan said the result had been achieved despite the recession, poor weather in Europe, the Icelandic volcano eruption and riots in Thailand.
During 2010, Etihad began flying to Alexandria, Colombo, Nagoya, Seoul, Tokyo and to Baghdad and Erbil in Iraq. It also announced a partnership with Virgin Blue in Australia.
Hogan described the outlook for 2011 as “strong”.