Etihad Airways halved its core first half operating loss to $0.4 billion against a deficit of $0.8 billion in the same period in 2020.
The improved financial performance reflected a “progressive recovery” despite a slower than expected return to global air travel and the “curveball” emergence of the Delta variant of Covid-19.
Earnings [ebitda] returned to the black at $0.1 billion from a negative $ 0.1 billion last year.
This came as the UAE airline carried one million passengers in the first six months of the year, with an average seat load factor of just 24.9%.
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This represents an average 10% month-on-month growth in passenger volumes since Etihad restarted passenger operations in July 2020.
As a result of new variants of the coronavirus affecting key travel markets in the Indian sub-continent and Europe, passenger revenue was down 68% at $0.3 billion year-on-year from $1.0 billion.
However, the dip in passenger revenue was offset by strong performance in cargo operations, with a 44% year-on-year increase in freight carried and a 56% year-on-year increase in revenue to $0.8 billion.
The carrier operated almost 3,500 flights a month to 67 passenger and cargo destinations by the end of June 2021. Since the beginning of 2021, Etihad has launched or restarted operations to ten destinations including the historic launch of scheduled services to Tel Aviv in April.
Etihad claims to be the first airline in the world with 100% of operating crew vaccinated.
Group chief executive Tony Douglas said: “Every day, Etihad Airways is making up for lost ground.
“Despite the curveball of the Delta variant disrupting the global recovery in air travel, we have continued to ramp up operations and are today in a much better place than this time in 2020.
“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. We are ready to welcome more guests on board to experience why Etihad is second to none when it comes to ensuring passenger wellbeing.”
Operating costs were cut by 27% year-on-year from $1.9 billion to US$1.4 billion, supported by reduced capacity and “volume-related expenses”. The airline also managed to rebuild its liquidity position to pre-pandemic levels.
Chief financial officer Adam Boukadida said: “While market demand has been slower to recover than anticipated, our record cargo performance has continued to buoy the business.
“At the same time, we have continued to strengthen underlying fundamentals to place Etihad in a better position to maximise the value of passenger revenue as our volumes return.
“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.
“While the pandemic still poses challenges, Etihad is on the path to becoming a sustainable and profitable business.”
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