Etihad Airways annual results revealed the carrier improved core operations despite challenges
Etihad Airways annual results from 2017 highlight improvements in their core operating performance by 22%, despite the challenges of increasing fuel cost and the administration of its equity partners Alitalia and airberlin.
Results published for 2017 are for core airline operations and exclude any extraordinary or one-off items.
Etihad increased revenues from core operations by 1.9% to US$ 6.1 billion (2016: US$ 5.9 billion), while reducing losses in the core operations by US$ 432 million to US$ 1.52 billion (2016: loss of US$ 1.95 billion).
Passenger and cargo yields also 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 US$ 337 million from higher fuel prices.
Etihad Cargo reduced capacity by 6%; however, revenues declined only marginally, down 0.8%, driven by stronger load factors and yields. Etihad Cargo carried 552,000 tonnes of cargo in 2017.
The airline reduced administration and general expenses by 14%, or US$ 162 million, over 2016.
H.E. 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.”
2017 Operational Highlights
Etihad Airways received twelve new aircraft in 2017, including two Airbus A380s, nine Boeing 787-9 Dreamliners, and an Airbus A330F.
These aircraft replaced 16 older Airbus A340, A330, A319 passenger and A330F cargo aircraft, which exited operations, thereby reducing the average fleet age to just six years.
Etihad improved its global route network with the introduction of the Airbus A380 on one of Etihad Airways’ two daily services to Paris Charles de Gaulle, and the Boeing 787-9 Dreamliner on services to Amsterdam, Athens, Amman, Madrid, Beijing, Seoul, Shanghai, Nagoya, and Melbourne.
“We made good progress in improving the quality of our revenues, streamlining our cost base, improving our cash-flow and strengthening our balance sheet.”
Tony Douglas, Group Chief Executive Officer of Etihad Aviation Group
Etihad Airways showed network punctuality of 82% for flight departures and 86% for arrivals in 2017. OTP (on time performance) for departures at the airline’s Abu Dhabi hub was 79%, and 89% for arrivals.
Peter Baumgartner, Chief Executive Officer of Etihad Airways, said: “Our transformation process has delivered tangible results to date, with a significant improvement in performance for 2017.
“The major driver to becoming a more agile and efficient organisation, resilient in a very competitive landscape, is our continued investment in skilled professionals, technology and digital innovation.”
Tony Douglas, Group Chief Executive Officer of Etihad Aviation Group, added: “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.
“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.”
Read more: Etihad Introduces Boeing 787 on Cairo Route