The Strategist

Etihad Airways lost $ 1.87 billion in 2016

07/28/2017 - 18:01

Last year, Air carrier Etihad Airways suffered a loss of $ 1.87 billion due to depreciation of assets. The financial results of the company fully showed difficulties faced by aviation companies of the Persian Gulf.

Lars Hentschel
Lars Hentschel
The air carrier's management associates part of the losses with the costs of fighting terrorism, as well as with low oil prices. However, the total revenue of Etihad Airways for 2016 was $ 8.36 billion. The company said that the main lines of activity still demonstrate sustainable performance.

"Revenues from passenger transportation amounted to $ 4.9 billion, a load factor of 79%; at that, a record number of passengers was transported - 18.5 million people." The number of available seat-kilometers increased by 9% to $ 113.9 billion. The market and the complex global economic climate, caused revenues to fall by 8%, but were partially offset by a 11% decrease in the unit cost of transport. "

The total loss includes the costs for the fleet, which amounted to $ 1.06 billion. This figure indicates a decline in market value and the early decommissioning of certain types of aircraft.

Contracts for fuel hedging also adversely affected Etihad's performance over the past year. However, the airline management expects that this factor will have less impact on financial results in the current year.