Etihad Posts $1.5 Billion Loss for 2017 on Partners’ Failures

Photo: thenational.ae

Etihad Airways improved its core operating performance by 22% in 2017, despite facing challenges including significant fuel cost increases, the entry into administration of its equity partners Alitalia and airberlin, and initial investment in a comprehensive business transformation programme.

The airline increased revenues from core operations by 1.9% to US$ 6.1 billion (2016: US$ 5.9 billion), while reducing losses in the core operations by US$ 432 million to US$ 1.52 billion (2016: loss of US$ 1.95 billion). Results published for 2017 are for core airline operations and exclude any extraordinary or one-off items; 2016 figures have been restated to show a like-for-like comparison.

Passenger and cargo yields improved as a result of capacity discipline, changes to the network with an increased focus on point-to-point traffic, leveraging of technology, and improving market conditions. A strong focus on efficiency delivered a 7.3% reduction in unit costs, despite the adverse impact of US$ 337 million from higher fuel prices.

The airline reduced administration and general expenses by 14%, or US$ 162 million, over 2016.

Etihad Airways carried 18.6 million passengers at a 78.5% load factor. Available Seat Kilometres (ASKs) increased by 1% in 2017 reflecting a significant moderation of capacity growth, and contributing to an improvement in the quality of the airline’s revenues.

Etihad Cargo reduced capacity by 6%; however, revenues declined only marginally, down 0.8%, driven by stronger load factors and yields. Etihad Cargo carried 552,000 tonnes of cargo in 2017.

H.E. Mohamed Mubarak Fadhel Al Mazrouei, Chairman of the Board of Etihad Aviation Group, said: “Our airline continues to be a key driver of Abu Dhabi’s vision to develop its tourism sector, grow commerce and strengthen links to key regional and international markets. This was a pivotal year in Etihad’s transformation journey.

The Board, new executive leadership team and all our employees worked extremely hard to navigate the challenges we faced. We made significant progress in driving improved performance and we are on track in 2018.

Tony Douglas, Group Chief Executive Officer of Etihad Aviation Group, added:

“We made good progress in improving the quality of our revenues, streamlining our cost base, improving our cash-flow and strengthening our balance sheet. These are solid first steps in an ongoing journey to transform this business into one that is positioned for financially sustainable growth over the long term.

I would like to thank our people for their hard work and dedication in 2017. It is crucial that we maintain this momentum, retaining talent and attracting leading professionals from around the world to work alongside our highly-skilled UAE national workforce.”

Source: Etihad Airways Press Release