Etihad transformation on track; revenue at Dh20.6B

abu dhabi — Etihad Airways on Thursday announced its 2019 results, showing an encouraging 32 per cent improvement in core operating performance for 2019.

This was on the back of revenues of $5.6 billion (Dh20.57 billion). Though the figure was down from 2018’s $5.9 billion, losses were significantly reduced to $870 million from the previous year’s $1.28 billion.

This result is better than Etihad’s internal plan for 2019; the airline’s transformation programme has seen cumulative core operating performance improved by 55 per cent since 2017.

Passenger routes were rationalised at the end of 2018 to optimise the network and improve revenue quality. However, passenger demand to and from Etihad’s ten gateways in India remained strong, despite the removal of capacity and feeder services previously provided through Jet Airways, and the airline added seats in these markets early in 2019.

Etihad carried 17.5 million passengers in 2019 compared to 2018’s 17.8 million, with a 78.7 per cent seat load factor (76.4 per cent in 2018) and a decrease in passenger capacity of 6 per cent (from 110.3 billion to 104 billion). Yields increased by 1 per cent, largely driven by capacity discipline, network and fleet optimisation and growing market share in premium and point-topoint markets. Due to the capacity reduction, passenger revenues slightly decreased to $4.8 billion, but route profitability improved.

Etihad Cargo remained committed to its transformation strategy in 2019, despite challenging market headwinds. Total cargo handled stood at 635,000 tonnes, with total revenues of $700 million. Total operating

costs were significantly reduced, driven by a continuous focus on cost control and favourable fuel price trend. Financing costs remained flat despite the delivery of new aircraft to the fleet.

Tony Douglas, group CEO of Etihad Aviation Group, said: “Operating costs were reduced significantly last year and both yields and load factors were increased despite passenger revenues being down due to network optimisation. An improvement to the cost base significantly offset the cost pressures faced by the business, giving us headroom to invest in the guest experience, technology and innovation, and our major sustainability initiatives.”

“There’s still some way to go but progress made in 2019, and cumulatively since 2017, has instilled in us a renewed vigour and determination to push ahead and implement the changes needed to continue this positive trajectory,” he added.

[We have] renewed vigour and determination to push ahead and implement the changes needed to continue this positive trajectory Tony Douglas,

Group CEO of Etihad Aviation Group