Etihad Airways reduces losses in 2017

Muscat: Etihad Airways improved its core operating performance by 22 per cent 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 per cent to US$6.1 billion (2016: $5.9 billion), while reducing losses in the core operations by $432million 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; the 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 per cent reduction in unit costs, despite the adverse impact of $337 million from higher fuel prices.
The airline reduced administration and general expenses by 14 per cent, or $162 million, over 2016.
Etihad Airways carried 18.6 million passengers at a 78.5 per cent load factor. Available Seat Kilometres (ASKs) increased by one per cent 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 six per cent; however, revenues declined only marginally, down 0.8 per cent, driven by stronger load factors and yields. Etihad Cargo carried 552,000 tonnes of cargo in 2017.
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,” he added.