Etihad goes non-profit

Etihad goes non-profit

Everyone knew Gulf airlines were seeing the brunt of low oil prices, terrorism, restrictions from western countries and their own internal diplomatic rows. Couple this with bad investments and impairments, it was obvious that Etihad’s profits would suffer.

However, the flag carrier took an unprecedented hit in 2016-2017, losing an astounding $1.87 billion, its first annual profit loss in five years – down from an already poor $103 million profit.

Etihad attributes a loss of $1.06 billion to aircraft charges and lower market values and an $808 million hit from shares in Alitalia and airberlin.

This follows Emirates’ similar drop off in May, where net profits dropped from $1.9 billion to $340 million. The loss made headlines, and it’s still less of a hit than Etihad.

After years of Gulf airlines expanding dramatically, the last two years have put a halt to their profitability and vast expansion and it shows no signs of getting any better.

Mohamed Mubarak Fadhel Al Mazrouei, chairman of the board, referred to the results as “disappointing.” The Group’s interim CEO Ray Gammell said: “This year is just as challenging for the global aviation industry and the ever-evolving competitive environment is likely to impact overall performance in 2017.”

Alex Baldwin
By Alex Baldwin July 28, 2017 15:14