Abu Dhabi, UNITED ARAB EMIRATES – Etihad Airways improved its core operating performance by 22% in 2017, despite facing challenges including significant fuel cost increases, the entry into administration of its equity partners Alitalia and airberlin, and initial investment in a comprehensive business transformation programme.
The airline increased revenues from core operations by 1.9%
to US$ 6.1 billion (2016: US$ 5.9 billion), while reducing losses in the core
operations by US$ 432 million to US$ 1.52 billion (2016: loss of US$ 1.95
billion). Results published for 2017 are for core airline operations and
exclude any extraordinary or one-off items; 2016 figures have been restated to
show a like-for-like comparison.
Passenger and
cargo yields improved as a result of capacity discipline, changes to the network
with an increased focus on point-to-point traffic, leveraging of technology,
and improving market conditions.
A strong
focus on efficiency delivered a 7.3% reduction
in unit costs, despite the adverse impact of US$ 337 million from higher fuel prices.
The airline
reduced administration and general expenses by 14%,
or US$ 162 million, over 2016.
Etihad
Airways carried 18.6 million
passengers at a 78.5% load factor.
Available Seat Kilometres (ASKs) increased by 1% in
2017 reflecting a significant moderation of capacity growth, and contributing
to an improvement in the quality of the airline’s revenues.
Etihad Cargo
reduced capacity by 6%; however,
revenues declined only marginally, down 0.8%, driven
by stronger load factors and yields. Etihad Cargo carried 552,000 tonnes of
cargo in 2017.
H.E. Mohamed
Mubarak Fadhel Al Mazrouei, Chairman of the Board of Etihad Aviation Group,
said: “Our airline continues to be a key driver of Abu Dhabi’s vision
to develop its tourism sector, grow commerce and strengthen links to key
regional and international markets.
“This was a
pivotal year in Etihad’s transformation journey. The Board, new executive leadership
team and all our employees worked extremely hard to navigate the challenges we
faced. We made significant progress in driving improved performance and we are
on track in 2018.”
Tony Douglas,
Group Chief Executive Officer of Etihad Aviation Group, added: “We made good
progress in improving the quality of our revenues, streamlining our cost base,
improving our cash-flow and strengthening our balance sheet.
“These are solid first steps in an
ongoing journey to transform this business into one that is positioned for
financially sustainable growth over the long term. I would like to thank our
people for their hard work and dedication in 2017.
“It is crucial that we maintain this
momentum, retaining talent and attracting leading professionals from around the
world to work alongside our highly-skilled UAE national workforce.”
2017 Operational Highlights
Etihad
Airways received twelve new aircraft in 2017, including two Airbus A380s, nine
Boeing 787-9 Dreamliners, and an Airbus A330F. These aircraft replaced 16 older
Airbus A340, A330, A319 passenger and A330F cargo aircraft, which exited operations,
thereby reducing the average fleet age to just six years.
In 2017, the
airline announced that it will cease operating to Dallas / Fort Worth, Entebbe,
Jaipur, San Francisco, Tehran, and Venice. A new route between Abu Dhabi and
Baku was launched in March 2018 and services to Barcelona will start on 21
November 2018.
The global
route network was further improved with the introduction of the Airbus A380 on
one of Etihad Airways’ two daily services to Paris Charles de Gaulle, and the
Boeing 787-9 Dreamliner on services to Amsterdam, Athens, Amman, Madrid,
Beijing, Seoul, Shanghai, Nagoya, and Melbourne.
Etihad Airways
recorded network punctuality of 82% for flight
departures and 86% for arrivals
in 2017 – results that place the airline as one of the most reliable airlines
in the world for 2017. OTP (on time performance) for departures at the
airline’s Abu Dhabi hub was 79%, and 89%
for arrivals.
Since its
inception, Etihad has placed a strong focus on developing young Emirati talent
into world-class aviation professionals, and by the end of 2017 employed 2,729
Emirati staff, representing 11% of the total
Etihad Aviation Group workforce.
Peter
Baumgartner, Chief Executive Officer of Etihad Airways, said: “Our
transformation process has delivered tangible results to date, with a
significant improvement in performance for 2017.
“Passenger
yields for the last quarter were up a very healthy 9%
versus the same period a year before. On-time performance was at record levels
and operationally we continue to drive down costs without compromising on
safety or quality across all areas of the business.
“The major
driver to becoming a more agile and efficient organisation, resilient in a very
competitive landscape, is our continued investment in skilled professionals,
technology and digital innovation, which is going to allow us to become
smarter, faster and even more responsive to the ever-changing needs of our
customers, making Etihad the airline of choice. These developments are at the
heart of our transformation strategy.”
2017 results | 2017 | 2016 |
Passenger Revenue (US$ billion) | 5.0 | 4.9 |
Cargo Revenue (US$ billion) | 0.9 | 0.9 |
Total revenue (US$ billion) | 6.1 | 5.9 |
Core airline profit (loss) (US$ billion) | (1.52) | (1.95) |
Total passengers (million) | 18.6 | 18.5 |
Available seat kilometres (billion) | 115.0 | 113.9 |
Seat factor (%) | 78.5 | 78.6 |
Number of aircraft | 115 | 119 |
Cargo tonnage (tonnes ‘000) | 552 | 596 |
[Note] Results published for 2017 are for core operations only and
exclude any extraordinary or one-off items; 2016 figures have been restated to
show a like-for-like comparison.