Etihad Airways has revealed its accounts for the first half of 2021. While the outcome was still negative overall, the losses have been significantly trimmed to some 50% of where they were during the same period last year. The airline said that the results represent a ‘progressive recovery’, and that it is preparing for a tidal wave of demand once restrictions are relaxed.
A million passenger milestone
From the low point of the pandemic slowdown, things have been picking up rapidly at Etihad. The airline carried a million passengers in the first half of 2021, showcasing a 10% month-on-month growth since the airline resumed flying in July 2020. Its overall capacity for the half was 16.4 billion available seat kilometers (ASKs), with 3,500 flights to 67 destinations operational by the end of June this year.
In a statement, Etihad CEO Tony Douglas commented,
“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.”
While the passenger side has continued to be difficult, with the airline posting average load factors of just 24.9%, cargo has been a bright spot in the results. Year on year, freight operations were up by 44%, while revenue was up 56%, stemming the losses from passenger flights.
Also contributing to a lower loss was Etihad’s outstanding efforts to trim its costs. The airline shrank its operating costs by 27% year on year, while fixed and finance costs dropped 22%. Overall, not only did the airline’s loss come in at $400 million – 50% of where it was this time last year – but its efforts to trim the fat have allowed it to get back to its pre-pandemic liquidity position.
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Preparing for an avalanche of demand
Of its 117-strong aircraft fleet, Etihad is currently using just 64 aircraft, which includes five freighters. The backbone of the fleet remains the 787 Dreamliner, with its new A350s yet to undertake any passenger flights.
As a result of so few passengers willing or able to travel, the airline’s passenger revenue dropped 68% year on year, bringing in just $300 million compared to $1 billion in the first half of 2020. Nevertheless, the airline believes that this will rapidly change once travel restrictions are relaxed. Douglas noted,
“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.”
In response to the UK government’s inclusion of the UAE on its amber list of destinations, Etihad has already begun adding capacity to its UK services. As more destinations open up, the airline will look to point its airplanes at the places most accessible to serve. However, there’s still some way to go, and with new variants still causing concern, there are no guarantees things won’t change again.
But, for now, it’s a solid result from the Abu Dhabi carrier, and some welcome positive outlooks from its leadership team.
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