Etihad Airways has halved its losses in the first six months of 2021, according to its latest operating and financial results.
The Abu Dhabi-based airline reported total losses of $400 million, half of the $800 million it lost in the first half of 2020.
The carrier’s progressive recovery is down to a cost-cutting procedure that saw it reduce operating costs year-on-year by 27 per cent – from US$1.9 billion to US$1.4 billion, supported by reduced capacity and volume-related expenses.
The airline carried one million passengers in the first half of the year, with an average load factor of just 24.9 per cent. Passenger revenue amounted to $300 million, down 68 per cent year on year, but cargo volumes were up 44 per cent.
Fixed overhead costs saw a significant improvement, reducing by 22 per cent to US$0.3 billion, while finance costs reduced by 22 per cent 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, 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.”