UAE - Mubasher: Etihad Airways' core operating losses halved to $400 million during the first half (H1) of 2021, compared to $800 million in the year-ago period.
The earnings before interest, tax, depreciation, and amortisation (EBITDA) have turned to a positive of $100 million in H1-21, compared to a negative of $100 million in the same period of 2020, according to a press release on Tuesday.
Throughout the first six months of 2021, Etihad has lowered its operating costs by 27% year-on-year (YoY) from $1.9 billion to $1.4 billion, supported by reduced capacity and volume-related expenses.
The airline recorded one million passengers in H1-21, reflecting an average 10% month-on-month (MoM) growth in passenger volumes since Etihad restarted passenger operations in July 2020.
Due to the coronavirus new variants which impacted key travel markets in the Indian Sub-Continent and Europe, passenger revenues plunged by 68% year-on-year (YoY) to $300 million from $1 billion.
However, the decrease in passenger revenues was offset by strong performance in cargo operations, with a 44% YoY rise in freight carried in H1-21 and a 56% increase in revenues.
The Group CEO, Tony Douglas, said: "As soon as destinations are added to the Abu Dhabi green list or UAE travel corridors, we are seeing a three to six-fold jump in bookings in some cases, showing there is a tidal wave of demand waiting to be unleashed."
Meanwhile, the Chief Financial Officer, Adam Boukadida, commented: "Our rock-solid credit rating has remained unwavering throughout the pandemic and was once again reaffirmed at ‘A with a stable outlook’ by Fitch in April 2021, serving as a clear sign of the long-term financial viability of our business."
