Abu Dhabi-based Etihad Airways recorded a core operating loss for the first half of 2021, but month-on-month passenger volumes have grown 10 percent since the airline restarted passenger operations in July 2020 after halting flights to stem the spread of Covid-19.
The network’s capacity has grown since the start of the year, with the airline now operating 3,500 flights a month to 67 passenger and cargo destinations by the end of June. Since the beginning of 2021, Etihad has launched or restarted operations to 10 destinations including the historic launch of scheduled services to Tel Aviv in April 2021.
Passenger revenue came in at $0.3 billion, down by 68 percent year-on-year from $1bn as new variants Covid-19 emerge and the virus continues to spread. However, the dip in passenger revenue was offset by strong performance in cargo operations, with a 44 percent year-on-year increase in freight carried in H1 2021 (365,500 tonnes) and a 56 percent year-on-year increase in revenue ($0.8 billion).
“Every day, Etihad Airways is making up for lost ground. Despite the curveball of the Delta variant disrupting the global recovery in air travel, we have continued to ramp up operations and are today in a much better place than this time in 2020,” Tony Douglas, group chief executive officer, said.
Despite rapidly changing restrictions, flight paths continue to reopen.
“As soon as destinations are added to the Abu Dhabi green list or UAE travel corridors, we are seeing a three to six-fold jump in bookings in some cases, showing there is a tidal wave of demand waiting to be unleashed,” he said.
Throughout the first half of 2021, Etihad retained a singular focus on cost control, decreasing operating costs by 27 percent year-on-year from $1.9bn to $1.4bn, supported by reduced capacity and volume-related expenses. Fixed overhead costs saw a significant improvement, reducing by 22 percent to $0.3bn, while finance costs reduced by 22 percent owing to an ongoing balance sheet deleveraging. As a result, the airline managed to rebuild its liquidity position to pre-pandemic levels.
Tony Douglas, group chief executive officer of Etihad Aviation Group.
Overall, Etihad recorded a core operating loss of $0.4 billion for H1 2021 (half the loss of $0.8 billion in H1 2020).
“While market demand has been slower to recover than anticipated, our record cargo performance has continued to buoy the business. At the same time, we have continued to strengthen underlying fundamentals to place Etihad in a better position to maximise the value of passenger revenue as our volumes return,” Adam Boukadida, chief financial officer, said.
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