Eti­had may keep los­ing money through 2022

The Star Malaysia - StarBiz - - Foreign News -

DUBAI: Eti­had Air­ways will con­tinue los­ing money through 2022, Fitch Rat­ings fore­cast, cit­ing the “high ex­e­cu­tion risk” in the sta­te­owned car­rier’s turn­around plan.

The credit rat­ings com­pany af­firmed the air­line’s long-term rat­ing at “A” with a sta­ble out­look, given the sup­port pro­vided by the govern­ment of Abu Dhabi, Eti­had’s owner.

“We con­tinue to rate Eti­had three notches be­low its ul­ti­mate sole share­holder Abu Dhabi, de­spite the change in cri­te­ria,” the com­pany said in a state­ment.

Fitch ex­pects Eti­had to re­main the smallest among the three Per­sian Gulf car­ri­ers, in­clud­ing Emi­rates and Qatar Air­ways.

De­spite cost ad­van­tages com­pared with Bri­tish Air­ways, Deutsche Lufthansa AG and Air France-KLM, Eti­had’s unit rev­enue is lower than that of Emi­rates and Euro­pean peers, Fitch said, cit­ing “very weak” fi­nan­cials.

Eti­had posted a US$1.52bil core air­line loss for 2017, ex­tend­ing losses at the main air­line unit to al­most US$3.5bil in the past two years. — Bloomberg

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