Etihad Airways pares annual loss, improves core operating performance and posts revenues of $5.86B amid challenging market conditions.
dubai — Etihad Airways on Thursday reported a reduction in annual loss to $1.28 billion in 2018 from $1.52 billion in 2017, and announced an improvement in core operating performance of 15 per cent in the year, seven higher than forecast. The UAE national carrier posted revenues of $5.86 billion, down from $6 billion in 2017.
In a statement, the Abu Dhabi government-owned airline said since commencing a five-year transformation programme in 2017, it had improved its core operating performance by 34 per cent despite challenging market conditions and effects of an increase in fuel prices.
The airline carried 17.8 million passengers in 2018, less than 18.6 million the year prior, with a 76.4 per cent seat factor (2017: 78.5 per cent) and a decrease in passenger capacity (Available Seat Kilometres or ASK)) of four per cent (from 115 billion to 110.3 billion).
The Abu Dhabi-based airline increased yields by four per cent, largely driven by capacity discipline, network and fleet optimisation and growing market share in premium and point-to-point markets. Passenger revenues remained steady at $ 5 billion.
“In 2018, we continued to forge ahead with our transformation journey by streamlining our cost base, improving our cash-flow and strengthening our balance sheet,” said Tony Douglas, group chief executive officer of Etihad Aviation Group.
“Our transformation is instilling a renewed sense of confidence in our customers, our partners and our people. As a major enabler of commerce and tourism to and from Abu Dhabi, we are intrinsically linked to the continued success of the emirate,” he said.
Douglas said at only 15 years old, Etihad is maturing as an acclaimed international airline, seizing opportunities and heading into the future as a pioneering leader.
Etihad Cargo recorded revenue of $827 million compared to $877 million in 2017 with 682,100 leg tonnes carried. The airline significantly reduced total costs by $416 million to $6.9 billion from $7.3 billion in 2017. Direct operating costs were reduced by $226 million (3.6 per cent) despite ongoing fuel price volatility. Administration and general expenses declined by $190 million, mainly driven by lower indirect manpower and other administration costs, the airline statement said.
During 2018, Etihad Airways took delivery of eight new aircraft including three Boeing 787-9s, four Boeing 787-10s and one Boeing 777200 freighter. The airline’s fleet count at year end was 106, with an average age of only 5.7 years. The > The Abu Dhabi-based airline increased yields by 4 per cent. > Passenger revenues remained steady at $ 5 billion.
> Etihad Cargo recorded revenue of $827 million compared to $877 million in 2017
> During 2018, Etihad Airways took delivery of eight new aircraft
> The UAE national carrier posted revenues of $5.86 billion, down from $6 billion in 2017
airline said a number of unprofitable routes were discontinued in 2018 including Tehran, Jaipur, Entebbe, Dallas Fort Worth, Ho Chi Minh City, Dhaka, Dar es Salaam, Edinburgh and Perth. The airline continued to forge important partnerships with other airlines and transport companies last year, including Saudia, Azerbaijan Airlines, Swiss, and Accesrail, adding to a growing list of 55 codeshare partners. Etihad has expanded its reach to more than 400 destinations worldwide by placing its EY code on 18,513 weekly flights beyond its own network.
Our transformation is instilling a renewed sense of confidence in our customers, our partners and our people Tony Douglas, group CEO, Etihad Aviation Group