Etihad continues to dig its grave

Things are not getting any better for Etihad, which despite its efforts continues to accumulate losses. 1.28 billion in 2018.

Etihad may lay off pilots, cancel aircraft orders and undertake drastic cost-cutting plans, but the losses keep piling up. 1.28 billion dollars of loss in 2018, a result it is true, better than that of 2017 when the Abu Dhabi airline had lost 1.51 billion.

Nearly 5 billion in losses over 3 years for Etihad

This represents a cumulative loss of 4.8 billion dollars over 3 years.

So of course some things are getting better and the effect of the savings plans will be felt over time (even if the cancelled orders will not change anything, they will just avoid increasing future expenses without changing anything to the existing). Operating performance increased by 15%, yield by 4% due to lower capacity and costs fell by 13% despite the 31% increase in oil costs.

It’s getting better but not enough. The patient is a little less sick, but from there to make it healthy the road is long and the cash not infinite even for an airline of Emirates.

The collapse of the Etihad empire

Etihad urgently needs a partner or a new owner. With rumors of a partnership with United and Star Alliance still at a standstill (that’s the nature of a rumor, otherwise it’s news), the solution that seems inevitable in the long run, barring a miracle, is the marriage with Emirates.

In 2011 Etihad was proud to launch an ambitious external growth strategy with the notable takeover of Alitalia in 2014. 5 years later we can see the fruits of this disastrous strategy: “Etihad Partners” is no more, Air Berlin has disappeared, Alitalia is living on a drip while waiting for a buyer who may never come and Etihad is bloodless.

Photo : Etihad by IanC6 via Shutterstock

Bertrand Duperrin
Bertrand Duperrinhttp://www.duperrin.com
Compulsive traveler, present in the French #avgeek community since the late 2000s and passionate about (long) travel since his youth, Bertrand Duperrin co-founded Travel Guys with Olivier Delestre in March 2015.
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