Despite a 12% rise in operating costs, revenues for Etihad Airways have increased by 39% year on year.

The airline reported revenues of US$1.1 billion between July and September 2011, up from US$1.1 billion over the same period in 2010.

The growth was prompted by a rise in passenger numbers of 18% to 2.25 million.

A rise in the price of oil did little to hamper the Gulf carrier's growth, with the Abu Dhabi-based airline having hedged 81% of its fuel for the remainder of 2011.

James Hogan, Etihad's CEO, said the airline had moved into monthly operating profitability for the first time since its foundation in 2003.

"Despite the continuing challenges of high fuel prices and economic downturn in many of the markets in which Etihad operates, we are seeing strong growth in all our key commercial indicators," he said.

"Our clear target is to break even in 2011 and this is another big step in the right direction for us. We are well on track to delivering a continuing financial return to our shareholder."