Etihad Airways predicts a turnaround in profitability in 2023

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(MENAFN – Al-Bayan) Source:

  • Abu Dhabi – Rami Samih

Date:
March 06, 2020 Etihad Airways revealed a positive improvement in its main operations by 32%, with revenues reaching $ 5.6 billion in 2019, while achieving an increase in the cumulative performance rate of major business by 55% since 2017.

Tony Douglas, CEO of Etihad Aviation Group, expected during a briefing yesterday at the company’s headquarters in Abu Dhabi to announce the results of last year, that the company will continue to achieve an improvement in its business and profitability transformation in 2023 as part of the business transformation program adopted by the company since 2017, which is a factor Head in achieving this positive performance.



Cut expenses

Douglas pointed out that ‘Etihad Airways managed to reduce total operating expenses due to fuel price trends and funding expenditures remained constant despite the entry of new aircraft to the fleet, and we were able to raise the rate of return and seat occupancy rate, despite the decrease in passenger revenue.

He explained that despite the challenges witnessed by the global travel markets, the company managed to reduce losses by $ 0.87 billion, with seat occupancy increasing by 78.7% and transporting 17.5 million passengers, and reducing the capacity of travelers by 6%, indicating that the positive results achieved by the company since 2017 and reduce the margin of loss and achieve achievements that exceed expectations, pushes us to insist on continuing to take the necessary steps that ensure the implementation of the targeted plans and the way forward in achieving the goals of the business transformation program.

Air Arabia Abu Dhabi

The CEO of Etihad Aviation Group expected that Air Arabia Abu Dhabi will start its operations in the second quarter of this year, starting in May, with the aim of offering various options to meet the growing demand for economic travel in the region and achieve harmony with the network of global destinations for Etihad, indicating that the company will go To new destinations and there is no competition between them and Etihad Airways.

He pointed out that at the end of 2019, the company had 101 aircraft, consisting of 95 passenger aircraft and 6 cargo planes with an average lifespan of 5.3 years, while the number of company destinations reached 76 destinations, and the company has increased the number of regular flights to the main destinations that include increasing its flights To London Heathrow to 4 daily flights and increase the number of flights to Riyadh, Delhi and Mumbai. Air freight

Etihad Cargo remained committed to the transformation strategy last year, with a total freight load of 635,000 tons, to record revenues of $ 0.70 billion, and the decrease is due to factors, including the program of rationalization of cargo operations on passenger planes’ hollow plane and cargo aircraft, which was launched in the last quarter 2018, and the conditions of global markets, which led to a decrease in the rate of return by 7.8%, while this was remedied in the fourth quarter, where the rate of tonnage per km increased by 5.6% compared to the same period last year, with an increase of 1.7 percentage points in the occupancy rate Payload.

Localization

Etihad continued its cooperation with the relevant authorities to attract and train Emirati women and citizens to support the sustainability of the Emiratization process in the aviation sector through technical programs in order to qualify them to lead the aviation sector in the country. During 2019, the number of Emirati women and citizens in Etihad Airways reached 2491 employees, which is equivalent to 12.23% of the total employees in the group. Female citizens constitute about 50.14% of the total national cadres in the group, as they work in all departments and departments as engineering, aircraft flying and other administrative jobs.

Etihad Airways and the Human Resources Department are collaborating to launch programs aimed at raising the Emiratisation rate in the aviation sector and increasing the number of citizens to 15% of the group’s total employees by 2021, in line with the Abu Dhabi government’s plan 2021.

Wider options

Etihad Airways offers wider options to its guests around the world through an integrated network of destinations that includes more than 400 destinations with 56 partners in the aviation sector. The number of partnership trips with the code reached 17,700 trips. In 2019, the carrier witnessed the expansion of its partnerships with Saudi Airlines, Gulf Air, Royal Jordanian, Swiss International Airlines, Kuwait Airways and Pakistan Airways.

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