Eti­had’s core per­for­mance rises by 22%

Strong fo­cus on ef­fi­ciency de­liv­ers 7.3% re­duc­tion in unit costs, de­spite ad­verse im­pact of higher fuel prices

The Gulf Today - Business - - FRONT PAGE -

ABU DHABI: 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 $6.1 bil­lion (2016: $5.9 bil­lion), while re­duc­ing losses in the core op­er­a­tions by $432 mil­lion to $1.52 bil­lion (2016: loss of $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 $337 mil­lion from higher fuel prices.

The air­line re­duced ad­min­is­tra­tion and gen­eral ex­penses by 14%, or $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.

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.

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