Etihad Airways reported that it witnessed a strong start for the current year, with the company significantly exceeding its goals set in its business transformation plan, on the occasion of its announcement yesterday, of its semi-annual performance results (January-June) for the year 2020. These figures included the best results recorded for the month of Last February, before the outbreak of the new Corona virus (Covid-19) pandemic, the closure of international borders and the suspension of flights to and from the UAE since March 24.
Etihad Airways confirmed, in a statement yesterday, that the size of the basic operating losses for this period rose to $ 172 million, to reach $ 758 million, compared to $ 586 million in the first half of 2019, as a result of a 38% decline in revenues, which amounted to 1.7 billion. Dollars (6.25 billion dirhams), compared to 2.7 billion dollars in the first half of last year.
In contrast, a 27% decrease in direct operational costs, which amounted to $ 1.9 billion for the first half of this year, compared to $ 2.7 billion for the same period in 2019, and 21% in general and administrative costs with $ 400 million, compared to $ 500 million In the first half of last year, as a result of the initiatives put in place by the management to contain costs and reduce the volume of operations.
And Etihad Airways transported 3.5 million passengers in the first half of 2020, compared to 8.2 million in the first half of 2019, or the equivalent of a decrease of 58%.
Shipping revenue recorded $ 490 million, an improvement of $ 139 million, or 37%, compared to the same period in 2019, with the transfer of 254 thousand and 345 tons of shipped goods, given the increase in demand and the increase in freight rates.
During the first three months of the year, the basic operating results improved by 34%, and despite the beginning of the outbreak of the "Covid-19" pandemic, the number of passengers decreased by 12% and the number of seats available per km by 9.5%. The passenger load factor in the first quarter of The year was 74%, and January's performance was significantly stronger than the same period in 2019, and by 81.9%, with a yield of 5.92 US cents.
The company witnessed a noticeable decline in operating revenues for the second quarter of this year, after the suspension of flights due to the outbreak of the Corona pandemic, and the arrest of 70% of its fleet from flying. This period recorded a decrease of 99% in the number of passengers and 95% in the number of seats per km, compared to the same period in 2019.
"(Etihad) faced many huge and unexpected challenges in the first six months," said Tony Douglas, CEO of "Etihad Airways". We started the year with strong and encouraging results within the framework of our business transformation program, which led us to a relatively strong position when the outbreak of the new Corona virus pandemic broke out, and allowed us to act smoothly and use all the resources available to us as the situation worsened, and took massive steps to reduce costs with a set of measures Broadband ».
He added, "We have revised our expectations for the remainder of 2020 based on the current conditions, and we remain optimistic that with the reopening of international borders, we will increase flights, and transport more guests safely and with peace of mind."
Douglas continued: «By next September we aim to increase our flights to half the size that we reached before the outbreak of the new Corona virus. We are assured of the future, especially given that the UAE is a pioneer in the search for a vaccine against the emerging Corona virus. The amazing efforts made by the Abu Dhabi government to ensure the safety and security of its residents and visitors will soon enable us to welcome guests to our wonderful Emirates. This commitment was successfully demonstrated with the hosting of Al-Nazzal Island activities in the capital.
Etihad operated 40 out of 97 passenger aircraft in the second quarter of 2020, including Boeing 787 Dreamliner, Boeing 777-300ER aircraft and Airbus cargo planes, supplementing its fleet of aircraft. The cargo of six Boeing 777-200F aircraft.
Etihad began gradually resuming its flights to an increasing number of destinations on its global network of destinations, following the relaxation of travel restrictions imposed by the relevant authorities in the UAE for citizens and residents.
During August and September, if international restrictions are lifted and international markets reopened, the company intends to operate flights to 61 global destinations from its headquarters in Abu Dhabi, occupying 50% of its capacity, which was occupied before the outbreak of the Corona virus pandemic.