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Etihad Airways reviews third consecutive loss as jobs, plane minimize – Moneycontrol.com

Etihad Airways reviews third consecutive loss as jobs, plane minimize – Moneycontrol.com

Final Up to date : Mar 14, 2019 05:55 PM IST | Supply: Reuters

The Abu Dhabi state-owned airline blamed difficult market situations together with larger gasoline costs for a $1.28 billion loss in 2018, narrower than the $1.58 billion it misplaced in 2017.

Etihad Airways on March 14 reported its third consecutive annual loss regardless of discovering value financial savings of practically half a billion {dollars} because it minimize its workforce and fleet.

The Abu Dhabi state-owned airline blamed difficult market situations together with larger gasoline costs for a $1.28 billion loss in 2018, narrower than the $1.58 billion it misplaced in 2017.

Etihad, which has trimmed its ambitions to be a serious intercontinental airline to give attention to point-to-point flights, has made losses of $4.75 billion since 2016.

Income fell practically Four p.c to $5.86 billion final 12 months, in contrast with the $6.1 billion it reported for 2017.

The airline launched a five-year turnaround technique in 2017, the 12 months present chief govt, Tony Douglas, was employed.

“In 2018, we continued to forge forward with our transformation journey by streamlining our value base, bettering our money circulate and strengthening our steadiness sheet,” Douglas, stated in a press release.

Etihad stated it slashed prices by $416 million in 2018, or 5.5 p.c, because it minimize its workforce by 5 p.c to 21,855.

The variety of passengers carried fell by 4.three p.c to 17.eight million because it minimize the variety of plane in its fleet by 9 and stopped flying to a number of routes it stated have been unprofitable.

Etihad has been rethinking its enterprise since 2016 after piling billions of {dollars} right into a failed technique of shopping for minority stakes in different airways.

Dozens of plane orders with Airbus and Boeing value billions of {dollars} have since been cancel led.

First Revealed on Mar 14, 2019 03:22 pm

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