Etihad hit by $1.9b loss

ETIHAD Airways has revealed an annual net loss of almost US$1.9 billion (A$2.4b) as Gulf carriers come under increasing pressure from political fallout and economic factors.

Reporting on its full 2016 financial year, the airline said its loss had been the result of “one-off impairments on aircraft and equity investments”, and that its passenger revenues had held steady at $US4.9 billion.

Passenger numbers had hit a record 18.5 million at load factors of 79%, with available seat kilometres up 9% to 113.9 billion.

However, yields fell 8% amid market capacity pressures and a tough economic climate, the carrier said.

“A culmination of factors contributed to the disappointing results for 2016,” said Etihad chairman Mohamed Mubarak Fadhel Al Mazrouei.

“The Board and executive team have been working since last year to address the issues and challenges through a comprehensive strategic review aimed at driving improved performance across the group, which includes a full review of our airline equity partnership strategy,” he said.

MEANWHILE, Delta seized on Etihad’s loss, issuing a statement to say it had come “despite receiving US$1.4 billion in subsidies from its government”.

The US carrier said the subsidy had been calculated by forensic accountants for the Partnership for Open and Fair Skies.

“To date, the UAE government has provided over US$26 billion in government subsidies to its airlines,” Delta said.