Etihad Airways Reports H1 Net Loss of $400 Million on a 29 Percent Revenue Decline to $1.2 Billion
Etihad Airways has reported a first half 2021 net loss of $400 million on a year-over-year decline in revenue of 29 percent to $1.2 billion. During the first half of 2021, the airline’s EBITDA turned positive to $100 million, compared to a negative 100 million in H1 2020.
On Tuesday (August 10, 2021), Etihad Airways reported their financial results for the first half (H1) 2021 for the six months ending June 30, 2021. The carrier reported a H1 2021 net loss of $400 million on a year-over-year decline in revenue of 29 percent to $1.2 billion. Etihad reduced operating costs during the first half by 27 percent to $1.4 billion compared to the same period last year, while fixed overhead and finance costs were both reduced by 22 percent. During the first half of the year, the airline carried one million guests with a seat load factor of 24.9 percent, compared to 3.5 million guests during H1 2020 with a load factor of 71 percent.
In Tuesday’s announcement, Etihad Airways Group’s Chief Executive Officer, Tony Douglas, said,
“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. 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. We are ready to welcome more guests on board to experience why Etihad is second to none when it comes to ensuring passenger wellbeing.”
Also commenting of the Group’s H1 2021 financial results, Etihad’s Chief Financial Officer, Adam Boukadida, said,
“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. Our rock-solid credit rating has remained unwavering throughout the pandemic and was once again reaffirmed at ‘A with a stable outlook’ by Fitch in April 2021, serving as a clear sign of the long-term financial viability of our business. While the pandemic still poses challenges, Etihad is on the path to becoming a sustainable and profitable business.”
During the first half of the year, Etihad Airways grew their number of destinations on offer by 20 percent to 60, as the carrier rebuilds connectivity from Abu Dhabi. The airline is currently operating 64 aircraft, including five freighters, after having taken the decision to indefinitely park part of their fleet. The backbone of the Etihad fleet remains the fuel-efficient Boeing 787 Dreamliner, with 39 Boeing 787-9s and 787-10s in their fleet.
Source: Etihad Airways