Abu Dhabi-based Etihad Airways has trimmed its losses from previous highs amid lower costs and revenues, but higher margins, according to its 2018 financial results announced today.
The national carrier’s third billion dollar loss in as many years, $1.28 billion, is 15.4 percent lower than losses reported in 2017. While total losses now amount to $4.67 billion over three years, results from 2018 suggest that the airline has lowered losses by nearly 32% over two years.
Moreover, despite passenger numbers having dropped 4.3 percent in 2018 at 17.8 million passengers compared to 18.6 million in 2017, the biggest change in the results is a 4% rise in yields (usually calculated as revenues per passenger kilometres), driven by capacity discipline, network and fleet optimisation, as well as a growing market share in premium and point-to-point markets, the airline said in a statement.
Etihad’s overall costs have declined $416 million to $6.9 billion compared to 2017, a decrease of 5.5 percent. It has also lowered administration and general expenses by $190 million, marking a 19 percent reduction from 2017, “mainly by lower indirect manpower and other administration costs,” the carrier’s statement added.
“In 2018, we continued to forge ahead with our transformation journey by streamlining our cost base, improving our cash-flow and strengthening our balance sheet,” said CEO Tony Douglas.
“Our transformation is instilling a renewed sense of confidence in our customers, our partners and our people. As a major enabler of commerce and tourism to and from Abu Dhabi, we are intrinsically linked to the continued success of the emirate,” he added.
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