Etihad Airways, the national airline of the UAE, has announced its strongest ever passenger and cargo volumes for a first quarter, together with $1.4 billion in total revenues during the three-month period, marking a year-on-year increase of 27 percent.

A total of 3.2 million passengers traveled with Etihad Airways during the first quarter of 2014, over 14 percent higher than the 2.8 million passengers from the same period last year. The growth rate is more than double a recent estimate from the International Air Transport Association (IATA) that passenger demand will increase 5.8 percent this year on a global basis.

Etihad Cargo also outperformed the global market, carrying 127,821 ton freight and mail in the first quarter. This marks a year-on-year increase of 26 percent, almost seven times higher than IATA’s prediction that the international cargo market will grow by four per cent in 2014.

The airline’s cargo revenue also increased by 26 per to $243 million, placing Etihad Cargo on track to become a billion dollar business in 2014.

James Hogan, president and CEO of Airways, said: “Although the global airline industry has faced challenges such as higher-than-expected fuel prices and fierce competition in key international markets during the first quarter of 2014, we have continued to outperform the passenger and cargo markets, and raise the bar even further for Etihad Airways.

“Our strong performance highlights the continued success of Etihad Airways’ strategic master plan, which focuses on the three fundamental pillars of organic network growth, codeshare partnerships and minority equity investments in other airlines around the world. This unique strategy, and the investments we have made in product, service and infrastructure, means that Etihad Airways is positioned strongly for top-line growth and bottom-line delivery in 2014.”