xwb777
Topic Author
Posts: 525
Joined: Wed Jan 17, 2018 4:13 pm

Etihad announces another loss; margins up

Thu Mar 14, 2019 12:40 pm

Etihad Airways, the national carrier of Abu Dhabi, has today morning announced its FY2018 results. The airline has posted $1.28 billion in losses, a 15.4% lower comapred to $1.52 billion in 2017. Passenger number has decreased by 4.3% which stood at 17.8m down from 18.6m the previous year.

However, yields has improved by 4% driven by capacity discipline, network and fleet optimisation, as well as a growing market share in premium and point-to-point markets, the airline said in a statement.

Etihad overall costs has decreased by $416 million to $6.9 billion compared to 2017, a decrease of 5.5%.


I think it will take Etihad some time to reach to the top again. By that time, its nearest neighbor and competitor, Emirates, will be all over the place.




Source: https://www.arabianbusiness.com/transpo ... ng-margins
 
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enilria
Posts: 9669
Joined: Fri Feb 22, 2008 7:15 pm

Re: Etihad announces another loss; margins up

Thu Mar 14, 2019 3:01 pm

Those are pretty bad numbers and the improvement was fairly minor. I support the ME3, but this type of result does them no favors.
 
Cactusjuba
Posts: 196
Joined: Thu Dec 14, 2017 8:06 am

Re: Etihad announces another loss; margins up

Thu Mar 14, 2019 3:05 pm

These last few years have been quite favorable economically (albeit low oil prices in ME). Wonder how they'll do when the next global downturn cycle hits?
 
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lightsaber
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Joined: Wed Jan 19, 2005 10:55 pm

Re: Etihad announces another loss; margins up

Thu Mar 14, 2019 4:24 pm

enilria wrote:
Those are pretty bad numbers and the improvement was fairly minor. I support the ME3, but this type of result does them no favors.

That is really bad. Abu Dhabi is selling assets at fire sale prices to raise cash. E.g., the Crysler building for a mere $150 million. They have assets, but it takes years to sell at market price. The destruction of cash has put their cash flow in a bind.

Hmmm... Of topic, but it explains why the Jet investment is held up. I only discuss from an EY cash flow standpoint limiting investment options.

IMHO, EY must defer deliveries even further.

EK cannot expand. Spit hubs reduce yield, so until the come up with tens of billions of USD/euros (pick your favorite), EK won't benefit. It will be ET, TK, and others.

Yield in the region is poor on connecting passengers. Once ISL is fully operational (I'm a schedule pessimist, but that quickly goes off topic), competition ratchets up. EY isn't doing enough.

Honestly, the only solution I can come up with costs $40 to $50 billion and 5 to 7 years:. Merge EY/EK by investing in DWC, expand it to the Abu-Dhabi/Dubai border. Move EY to an Abu-Dhabi side of the airport abanding AUH with rail to Abu-Dhabi.

While implimenting the above fantasy, why not invest another $12 billion in a massive Disney park, also on the border of the two Emirates. Magic Kingdom in Abu Dhabi and another park in Dubai that serves alcohol. Building lits of nearby hotels to be the Disney for the region including India.

No, I haven't been drinking, why do you ask? ;)
Being serious, EY must go big or they are done, in my opinion.

Lightsaber
IM messages to mods on warnings and bans will be ignored and nasty ones will result in a ban.
 
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Channex757
Posts: 2364
Joined: Sat Jun 18, 2016 7:07 am

Re: Etihad announces another loss; margins up

Thu Mar 14, 2019 4:40 pm

Whilst the figures are ghastly, a deep dive might yield a different picture.

What percentage of this is one-off costs and writeoffs? Change costs money. Cancellations also do not come cheap and the numbers might be reflecting losses in ongoing payments and deposits.

The next quarter will be one to watch.
 
goosebayguy
Posts: 661
Joined: Fri Sep 25, 2009 1:12 pm

Re: Etihad announces another loss; margins up

Wed Sep 18, 2019 6:05 pm

A Billion here a Billion thee and pretty soon you're talking real money.
 
xwb777
Topic Author
Posts: 525
Joined: Wed Jan 17, 2018 4:13 pm

Re: Etihad announces another loss; margins up

Wed Sep 18, 2019 6:09 pm

Losses r expected for the coming years until the turnaround plan is over.
 
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casinterest
Posts: 9429
Joined: Sat Feb 12, 2005 5:30 am

Re: Etihad announces another loss; margins up

Wed Sep 18, 2019 6:22 pm

The ME3 have an interesting corner of the market that made sense with 747/A380 traffic, but in the new world of 787/A350 it just seems like that corner will shrink as flights can more economically connect at other more regionally specific airports, and the ongoing regional blockades are causing reroutes that add miles to flights that are not helping as well.
Where ever you go, there you are.
 
Scotron12
Posts: 178
Joined: Fri Mar 01, 2019 2:13 pm

Re: Etihad announces another loss; margins up

Wed Sep 18, 2019 6:50 pm

It's still a huge loss, added to last year totals almost $$3b!

Rumor is they will take their A350s in 2021...if they ever do. I guess their orders on the 777X will evaporate as well.

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