Etihad Airways Improves Core Performance In 2018 As Transformation Continues
Fakhir Rizvi 5 days ago Thu 14th March 2019 | 09:15 PM
Etihad Airways today announced an improvement in core operating performance of 15% in 2018, 7% higher than forecast, on revenues of US$ 5.86 billion (2017: US$ 6.0 billion)
ABU DHABI, (UrduPoint / Pakistan Point News / WAM - 14th Mar, 2019) Etihad Airways today announced an improvement in core operating performance of 15% in 2018, 7% higher than forecast, on revenues of US$ 5.86 billion (2017: US$ 6.0 billion).
Since commencing its five-year transformation programme in 2017, the airline has improved its core operating performance by 34% despite challenging market conditions and effects of an increase in fuel prices.
Etihad carried 17.8 million passengers in 2018 (2017: 18.6m), with a 76.4% seat factor (2017: 78.5%) and a decrease in passenger capacity (Available Seat Kilometres (ASK)) of 4% (from 115.0 billion to 110.3 billion).
The airline increased yields by 4%, largely driven by capacity discipline, network and fleet optimisation and growing market share in premium and point-to-point markets. Passenger revenues remained steady at US$ 5.0 billion.
Etihad Cargo recorded a strong performance for the year largely due to a lower cost base, a programme of efficiency improvements including the consolidation of the freighter fleet around the Boeing 777F, and a refreshed network focusing on core trade lanes leveraging Abu Dhabi’s geographical position to maximise freighter to belly-hold flows.
Cargo revenue for the year was US$ 827 million (2017: US$ 877m) with 682,100 leg tonnes carried (2017: 853,300 tonnes). Cargo Freight Tonne Kilometres (FTK) decreased by 21% (from 4.3 billion to 3.4 billion), with a 15.5% increase in yields.
The airline significantly reduced total costs by US$ 416 million to US$ 6.9 billion (2017: US$ 7.3bn). Direct operating costs were reduced by US$ 226 million (3.6%) despite ongoing fuel price volatility. Administration and general expenses declined by US$ 190 million (19%), mainly driven by lower indirect manpower and other administration costs.
Tony Douglas, Group Chief Executive Officer of Etihad Aviation Group, said: "In 2018, we continued to forge ahead with our transformation journey by streamlining our cost base, improving our cash-flow and strengthening our balance sheet.
"Our transformation is instilling a renewed sense of confidence in our customers, our partners and our people. As a major enabler of commerce and tourism to and from Abu Dhabi, we are intrinsically linked to the continued success of the emirate."