Etihad Airways today announced its financial results for 2017, showing increased revenues and shrinking losses - the result of a strategic review of its global business.
In a statement released by Etihad, it reported a 1.9 per cent increase in revenues from core operations to $6.1 billion while losses in core operations were cut by $432 million to $1.52 billion.
The airline also improved its core operating performance by 22 per cent in 2017, despite facing challenges including significant fuel cost increases, the entry into administration of its equity partners Alitalia and airberlin, and initial investment in a comprehensive business transformation programme.
“This was a pivotal year in Etihad’s transformation journey. The Board, new executive leadership team and all our employees worked extremely hard to navigate the challenges we faced. We made significant progress in driving improved performance and we are on track in 2018,” said Mohamed Mubarak Fadhel Al Mazrouei, chairman of the Board of Etihad Aviation Group.
Passenger and cargo yields improved as a result of capacity discipline, changes to the network with an increased focus on point-to-point traffic, leveraging of technology, and improving market conditions.
A strong focus on efficiency delivered a 7.3 per cent reduction in unit costs, despite the adverse impact of US$ 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 1 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 6 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.
Al Mazrouei 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.
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."
“These are solid first steps in an ongoing journey to transform this business into one that is positioned for financially sustainable growth over the long term. I would like to thank our people for their hard work and dedication in 2017.
“It is crucial that we maintain this momentum, retaining talent and attracting leading professionals from around the world to work alongside our highly-skilled UAE national workforce.” - TradeArabia News Service