Etihad Airways said its first quarter performance showed a 34 per cent year-on-year improvement and the carrier was "progressing well ahead of its transformation plan targets", before Covid-19 brought global air travel to a grinding halt.
"Etihad faced a set of enormous and unpredictable challenges in the first six months of the year," Tony Douglas, chief executive of Etihad Aviation Group, said in a statement on Thursday.
"We started 2020 strong and recorded encouraging results as part of our continuing transformation programme. This left us in a relatively robust position when Covid-19 hit, allowing us to act with agility and to mobilise all available resources as the crisis deepened, taking major steps to reduce costs through a wide-reaching series of measures."
The Abu Dhabi airline had its best monthly results to date for February, before the impact of Covid-19, the subsequent closure of international borders, and the suspension of flights to and from the UAE from March 24.
The airline carried 3.5 million passengers during the first half of the year, down 58 per cent from the same period in 2019, with a seat load factor of 71 per cent.
Etihad recorded a $758 million (Dh2.78 billion) loss in the first six months of its fiscal year, compared with $586m in the prior-year period. First-half revenue fell 38 per cent year-on-year to $1.7bn.
The state-owned airline grounded its fleet and reduced staff wages after the UAE suspended regular passenger flights in March to curb the spread of the virus.
During the first half, Etihad reduced operating costs by 27 per cent to $1.9bn.
In May, the carrier said it cut jobs in several areas of its business, joining its global peers in taking tough measures to slash costs to survive the coronavirus crisis. The Etihad Aviation Group, which employed 20,369 people at the end of 2019, did not say how many people were made redundant or in which departments.
“While we have revised our outlook for the rest of 2020 based on current realities, we remain optimistic that as international borders re-open, we will increase our flying and carry more guests securely," Mr Douglas said. "By September, we aim to increase our worldwide flights to half our pre-Covid-19 capacity."
Even as restrictions begin to lift in some countries, leading chief executives of carriers, trade bodies and analysts in the aviation industry warned it may take air travel demand several years to recover to pre-coronavirus levels.
According to Moody's Investor Service, global airline passenger demand will not return to pre-crisis levels until the end of 2023, and only then if effective vaccines and medicines are available.
Etihad Airways began re-starting passenger flights in June, with plans to bring its network to 58 routes in July and August. By this month, it aims to operate approximately 45 per cent of its pre-Covid capacity.
Amid the global pandemic, Etihad proceeded with plans for a new low-cost carrier in Abu Dhabi with Sharjah-based budget carrier Air Arabia.
Air Arabia Abu Dhabi, a joint venture between the two UAE airlines, started operations in July with two routes to Alexandria and Sohag in Egypt. Starting August 7, it will add new destinations to Kabul in Afghanistan and Dhaka in Bangladesh out of its base at Abu Dhabi International Airport.
During the first-half, general and administrative expenses dropped 21 per cent to $0.40bn driven by “management cost containment initiatives and reduced operations,” according to the airline.
Cargo revenues rose 37 per cent year-on-year to $0.49bn, on the back of higher demand and a spike in cargo fares.
“Etihad managed to maintain a satisfactory level of liquidity despite a major drop in revenues, while continuing to raise new liquidity facilities supported by local and international financial institutions,” Adam Boukadida, chief financial officer, Etihad Aviation Group, said.
“A greater emphasis is being placed on a drive towards increased cost optimisation and efficiencies across the entire business to face the hurdles placed in our way by Covid-19."
Tamkeen's offering
- Option 1: 70% in year 1, 50% in year 2, 30% in year 3
- Option 2: 50% across three years
- Option 3: 30% across five years
Ipaf in numbers
Established: 2008
Prize money: $50,000 (Dh183,650) for winners and $10,000 for those on the shortlist.
Winning novels: 13
Shortlisted novels: 66
Longlisted novels: 111
Total number of novels submitted: 1,780
Novels translated internationally: 66
Scoreline
Liverpool 3
Mane (7'), Salah (69'), Firmino (90')
Bournemouth 0
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The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
Watch live
The National will broadcast live from the IMF on Friday October 13 at 7pm UAE time (3pm GMT) as our Editor-in-Chief Mina Al-Oraibi moderates a panel on how technology can help growth in MENA.
You can find out more here
Killing of Qassem Suleimani
Killing of Qassem Suleimani
Indoor cricket in a nutshell
Indoor Cricket World Cup – Sep 16-20, Insportz, Dubai
16 Indoor cricket matches are 16 overs per side
8 There are eight players per team
9 There have been nine Indoor Cricket World Cups for men. Australia have won every one.
5 Five runs are deducted from the score when a wickets falls
4 Batsmen bat in pairs, facing four overs per partnership
Scoring In indoor cricket, runs are scored by way of both physical and bonus runs. Physical runs are scored by both batsmen completing a run from one crease to the other. Bonus runs are scored when the ball hits a net in different zones, but only when at least one physical run is score.
Zones
A Front net, behind the striker and wicketkeeper: 0 runs
B Side nets, between the striker and halfway down the pitch: 1 run
C Side nets between halfway and the bowlers end: 2 runs
D Back net: 4 runs on the bounce, 6 runs on the full
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
Retail gloom
Online grocer Ocado revealed retail sales fell 5.7 per cen in its first quarter as customers switched back to pre-pandemic shopping patterns.
It was a tough comparison from a year earlier, when the UK was in lockdown, but on a two-year basis its retail division, a joint venture with Marks&Spencer, rose 31.7 per cent over the quarter.
The group added that a 15 per cent drop in customer basket size offset an 11.6. per cent rise in the number of customer transactions.
The biog
Favourite food: Tabbouleh, greek salad and sushi
Favourite TV show: That 70s Show
Favourite animal: Ferrets, they are smart, sensitive, playful and loving
Favourite holiday destination: Seychelles, my resolution for 2020 is to visit as many spiritual retreats and animal shelters across the world as I can
Name of first pet: Eddy, a Persian cat that showed up at our home
Favourite dog breed: I love them all - if I had to pick Yorkshire terrier for small dogs and St Bernard's for big
'Nope'
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Jordan%20Peele%0D%3Cbr%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Daniel%20Kaluuya%2C%20Keke%20Palmer%2C%20Brandon%20Perea%2C%20Steven%20Yeun%0D%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203.5%2F5%3C%2Fp%3E%0A
UAE currency: the story behind the money in your pockets
The Bio
Favourite place in UAE: Al Rams pearling village
What one book should everyone read: Any book written before electricity was invented. When a writer willingly worked under candlelight, you know he/she had a real passion for their craft
Your favourite type of pearl: All of them. No pearl looks the same and each carries its own unique characteristics, like humans
Best time to swim in the sea: When there is enough light to see beneath the surface
The BIO:
He became the first Emirati to climb Mount Everest in 2011, from the south section in Nepal
He ascended Mount Everest the next year from the more treacherous north Tibetan side
By 2015, he had completed the Explorers Grand Slam
Last year, he conquered K2, the world’s second-highest mountain located on the Pakistan-Chinese border
He carries dried camel meat, dried dates and a wheat mixture for the final summit push
His new goal is to climb 14 peaks that are more than 8,000 metres above sea level
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UAE currency: the story behind the money in your pockets
More from Neighbourhood Watch:
The five pillars of Islam
Learn more about Qasr Al Hosn
In 2013, The National's History Project went beyond the walls to see what life was like living in Abu Dhabi's fabled fort:
Our legal advisor
Ahmad El Sayed is Senior Associate at Charles Russell Speechlys, a law firm headquartered in London with offices in the UK, Europe, the Middle East and Hong Kong.
Experience: Commercial litigator who has assisted clients with overseas judgments before UAE courts. His specialties are cases related to banking, real estate, shareholder disputes, company liquidations and criminal matters as well as employment related litigation.
Education: Sagesse University, Beirut, Lebanon, in 2005.
The%20specs%3A%202024%20Mercedes%20E200
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