Annual losses at Etihad Airways have been trimmed despite a fall in passenger carryings but a boost in cargo operations.
Figures for 2021 show an operating loss of $476 million against $1.7 billion the previous year when Covid first hit and a 41% improvement against pre-pandemic results in 2019 of $802 million.
The airline carried 3.5 million passengers last year, with an average seat load factor of just 39.6%.
Passenger revenues of $1.07 billion fell 14% year-on-year with carryings down from 4.15 million in 2020.
While ongoing travel restrictions and new variants of the virus dampened demand, the airline said it saw passenger revenues bounce back in the last quarter, recovering to 50% of pre-pandemic 2019 levels in December.
Passenger loads doubled in the second half of the year, reaching 70.1% in December as travel demand peaked during the winter holiday period.
The airline recorded a strong surge in passenger volumes in the final three months of the year following the September relaxation of mandatory quarantine periods in Abu Dhabi.
The airline launched or restarted operations to 13 destinations in 2021, including the introduction of scheduled services to Tel Aviv following the normalisation of relations between the UAE and Israel.
A salary reduction for its 12,500 staff, carried over from 2020, supported the business in “navigating unprecedented challenges” from the pandemic and was brought to an end in October.
As operations progressively ramped up throughout 2021, Etihad cut operating costs by $110 million, despite a $197 million increase in fuel costs driven by rallying oil prices.
Fixed overhead costs and finance costs also fell by 14% or $110 million and 20% or $90 million respectively.
The airline said it managed to maintain strong liquidity in 2021 as a result.
Group chief executive Tony Douglas said: “In another year of global uncertainty, Etihad Airways has continued to move forward, strengthen its business and build on its world-class travel proposition.
“Despite the slowdown caused by Omicron, we are confident that the spring and summer season will continue to see a resurgence in travel as more people return to the skies.
“We look forward to our guests being able to experience our state-of-the-art Airbus A350s when they debut later this year, taking pride of place alongside our Boeing 787s.
“With one of the most fuel-efficient fleets in the world and with sustainability at the very top of our agenda, we will continue to pave the way for more sustainable flying in 2022 and beyond.”
Chief financial officer Adam Boukadida added: “Despite Covid-19 suppressing global travel demand for a second year running, we have continued to transform Etihad Airways into a more efficient business, delivering additional line-by-line savings and further optimising our cost base.
“Our record cargo operations have provided much-needed uplift, helping to more than double monthly operating revenue between January and December.”