xwb777
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Etihad will return to profitability by 2023

Wed Oct 09, 2019 1:09 pm

Etihad Airways, the national carrier of the United Arab Emirates, will return to profitability by 2023, says the CCO of the airline. After announcing the turnaround plan few years ago, it is yielding results and will drive Etihad to be profitable by the target year.

Quoting the CCO "Five years is enough, if nothing geo-political happens or macro events that we haven’t foreseen.”

Etihad expects to be back in growth mode by next year but it will be through the ASKs. The airline has taken delivery of 2 A350-1000s with a further three joining in future.
Last year, several unprofitable routes were dropped, including Tehran, Jaipur, Entebbe, Dallas, Ho Chi Minh City, Dhaka, Dar es Salaam, Edinburgh and Perth.

So the two stored A350s are for Eihad and not owned by Airbus?

Link: https://www.arabianbusiness.com/transpo ... it-in-2023
 
peterinlisbon
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Re: Etihad will return to profitability by 2023

Wed Oct 09, 2019 1:47 pm

I've seen some pretty amazing deals on Etihad if you get creative with the outbound and return points - for example, £300 for Istanbul-Kuala Lumpur-Casablanca. I'm not sure if that's an error fare but it's pretty amazing.
 
Elementalism
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Re: Etihad will return to profitability by 2023

Wed Oct 09, 2019 1:56 pm

Predicting profitability in 4 years is wishful thinking. Especially as we are looking at a global slowdown in the economy coming at some point over that time period. His quote acknowledges that as their caveat.
 
drdisque
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Re: Etihad will return to profitability by 2023

Wed Oct 09, 2019 2:44 pm

I'd hope so.

Ideally they could standardize the fleet with just the A321neo, 789/10, and A350-1000, that would be a really mean fleet to contend with. Maybe augment with some A320neo.
 
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gatibosgru
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Re: Etihad will return to profitability by 2023

Wed Oct 09, 2019 3:02 pm

peterinlisbon wrote:
I've seen some pretty amazing deals on Etihad if you get creative with the outbound and return points - for example, £300 for Istanbul-Kuala Lumpur-Casablanca. I'm not sure if that's an error fare but it's pretty amazing.


I flew JFK-AUH-JNB rt for U$276 once on EY, for sure an error fare.
@DadCelo
 
randomdude83
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Re: Etihad will return to profitability by 2023

Wed Oct 09, 2019 3:03 pm

I genuinely believe Etihad would get a major major boost if the owners of abu Dhabi AirPort just complete the midfield terminal. Its a Masterpiece of engineering and has yet to be finished.
 
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lightsaber
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Re: Etihad will return to profitability by 2023

Wed Oct 09, 2019 6:26 pm

Elementalism wrote:
Predicting profitability in 4 years is wishful thinking. Especially as we are looking at a global slowdown in the economy coming at some point over that time period. His quote acknowledges that as their caveat.

Agreed. Any competent plan must be within 2 years profitable. 5-years is avoiding the problem.

I fear for EY.

For example, EK started a re-strategy About 18 months ago and are bragging they increased their profits:

https://m.khaleejtimes.com/business/avi ... lf-results

Lightsaber
IM messages to mods on warnings and bans will be ignored and nasty ones will result in a ban.
 
ShamrockBoi330
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Re: Etihad will return to profitability by 2023

Wed Oct 09, 2019 6:31 pm

randomdude83 wrote:
I genuinely believe Etihad would get a major major boost if the owners of abu Dhabi AirPort just complete the midfield terminal. Its a Masterpiece of engineering and has yet to be finished.


Any truths to the rumours of structural flaws? sorry, no links, just remember reading it a while back!
 
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scbriml
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Re: Etihad will return to profitability by 2023

Wed Oct 09, 2019 6:45 pm

Return to profitability? :rotfl:
Time flies like an arrow. Fruit flies like a banana!
There are 10 types of people in the World - those that understand binary and those that don't.
 
airbazar
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Re: Etihad will return to profitability by 2023

Wed Oct 09, 2019 9:20 pm

scbriml wrote:
Return to profitability? :rotfl:


You beat me to it :rotfl:
 
Breathe
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Re: Etihad will return to profitability by 2023

Wed Oct 09, 2019 9:33 pm

Are management planning on selling their stakes in Air Seychelles & Air Serbia?

I know the CEO said they were happy with their stake in Virgin Australia.

Despite the cancellation of orders for planes, I get the impression they probably still have too many on order and need to make more cancellations.

It's been said many times before, but the airline could survive as a smaller airline (compared to their next door neighbours) serving the capital of the UAE.

Still a long road ahead for them to go, to get into profitability.
 
TC957
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Re: Etihad will return to profitability by 2023

Wed Oct 09, 2019 10:14 pm

They should stop investing in dud airlines like Alitalia and Air Berlin in future.
Also, how come we are 11 replies in and no-one has yet said get rid of the A380's and all will be hunky-dorey !!
 
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FlyThiz
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Re: Etihad will return to profitability by 2023

Wed Oct 09, 2019 10:28 pm

I doubt they'll be around that long.
Is mayonnaise an instrument?
 
DWC
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Re: Etihad will return to profitability by 2023

Thu Oct 10, 2019 12:16 am

xwb777 wrote:
Etihad Airways, the national carrier of the United Arab Emirates

Bold : my emphasis.
With all the talks on a-net about the ME3, the geopolitics of the UAE should be clear to all av-geeks, so they
1) avoid buzz expressions
2) understand why EY & EK are unlikely to be merged in the foreseeable future.
Neither EY nor EK are "the national carrier" of the UAE, because the UAE are a confederation of 7 sovereign states (except for defence & Central Bank/monetary policy ), called emirates in local parlance. While Abu Dhabi is indeed the political capital of the UAE, 3 of the 7 emirates have their own "national carrier". EY is the national carrier of the state called Abu Dhabi, EK that of the state called Dubai, G9 that of the state called Sharjah ( Ras Al Khaima also tried theirs, but failed ).

It is as preposterous as saying AF is the national carrier of the EU or that the Georgia ATL-based DL that of the US.

The case of CA being indeed the "national flag carrier of China" is different relative to the other two CN3, because China has one government, pretty centralized considering that all of the PRC is actually on Beijing's timezone, which geographically covers four, just like the US.
 
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LAX772LR
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Re: Etihad will return to profitability by 2023

Thu Oct 10, 2019 2:21 am

randomdude83 wrote:
I genuinely believe Etihad would get a major major boost if the owners of abu Dhabi AirPort just complete the midfield terminal.

Buildings don't drive revenue, and newer ones generally drive airlines' costs up, not down. Thus, "major boost" in what?



scbriml wrote:
Return to profitability?

:checkmark: :checkmark:
I myself, suspect a more prosaic motive... ~Thranduil
 
Breathe
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Re: Etihad will return to profitability by 2023

Thu Oct 10, 2019 11:16 am

DWC wrote:
xwb777 wrote:
Etihad Airways, the national carrier of the United Arab Emirates

Bold : my emphasis.
With all the talks on a-net about the ME3, the geopolitics of the UAE should be clear to all av-geeks, so they
1) avoid buzz expressions
2) understand why EY & EK are unlikely to be merged in the foreseeable future.
Neither EY nor EK are "the national carrier" of the UAE, because the UAE are a confederation of 7 sovereign states (except for defence & Central Bank/monetary policy ), called emirates in local parlance. While Abu Dhabi is indeed the political capital of the UAE, 3 of the 7 emirates have their own "national carrier". EY is the national carrier of the state called Abu Dhabi, EK that of the state called Dubai, G9 that of the state called Sharjah ( Ras Al Khaima also tried theirs, but failed ).

It is as preposterous as saying AF is the national carrier of the EU or that the Georgia ATL-based DL that of the US.

The case of CA being indeed the "national flag carrier of China" is different relative to the other two CN3, because China has one government, pretty centralized considering that all of the PRC is actually on Beijing's timezone, which geographically covers four, just like the US.

Technically speaking, only the UAE is the sovereign state as defined by international law, but as you've rightly described it is a largely loose federation of 7 Emirates.

Using the comparison to AF being the national carrier of the EU vs the UAE is not very good as the EU is not a sovereign nation, whereas the UAE is.
 
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seahawk
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Re: Etihad will return to profitability by 2023

Thu Oct 10, 2019 11:21 am

If you use macro events as a reason to fail, that is not a hard prediction. And in the face of the coming global recession, it is unlikely they will hit the target anyway.
 
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SQ789
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Re: Etihad will return to profitability by 2023

Thu Oct 10, 2019 12:33 pm

The A320s and A330s are being retired so it can go back by 2023.
If it's not Boeing, I'm not going!
 
jimbo737
Posts: 437
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Re: Etihad will return to profitability by 2023

Thu Oct 10, 2019 3:19 pm

Only a government subsidized airline has the luxury / “get out of jail free” card of 3-4 years to “return to profitability”.

Any struggling private sector airline would be far more aggressive in its stance if it planned to survive to be be around in 4 years.

4 years is an eternity in the airline sector.
 
Fliplot
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Joined: Wed Jul 31, 2019 2:23 pm

Re: Etihad will return to profitability by 2023

Thu Oct 10, 2019 9:05 pm

I guess when Abu Dhabi runs out of money, then Etihad will be in trouble. Just like the old Swissair, a foreign gentleman thought he could build an airline empire. The similarities are surprising!
 
DWC
Posts: 608
Joined: Mon Nov 06, 2017 7:49 pm

Re: Etihad will return to profitability by 2023

Thu Oct 10, 2019 9:57 pm

jimbo737 wrote:
Only a government subsidized airline has the luxury / “get out of jail free” card of 3-4 years to “return to profitability”.
Any struggling private sector airline would be far more aggressive in its stance if it planned to survive to be be around in 4 years.

Then all US airlines would still be around today, none gone bankrupt & the survivors never through chap. 11.
Just ponder how most private airlines have gone bust one way or the other, the track of private governance in the sector, specially in the US, is appalling, and I am not just talking of Frank Lorenzo.
At the other side of the spectrum, Juan Trippe, Gordon Bethune, MOL are/were outstanding, all men with vision. Toss in too the emblematic ME3 bosses, past & present, most from the English community. AAB is one outsider. There are more of course.

Again, I repeat, nature of ownership does not guarantee anything, it is first & foremost about the people on high ( CEOs and all those who have influence down the pyramid ). Some SOE's are well run, some not, the same for the private sector, except for the fact the latter outnumber the former.
 
DWC
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Re: Etihad will return to profitability by 2023

Thu Oct 10, 2019 10:06 pm

Breathe wrote:
DWC wrote:
Neither EY nor EK are "the national carrier" of the UAE, because the UAE are a confederation of 7 sovereign states (except for defence & Central Bank/monetary policy ), called emirates in local parlance. While Abu Dhabi is indeed the political capital of the UAE, 3 of the 7 emirates have their own "national carrier". EY is the national carrier of the state called Abu Dhabi, EK that of the state called Dubai, G9 that of the state called Sharjah ( Ras Al Khaima also tried theirs, but failed ).

Technically speaking, only the UAE is the sovereign state as defined by international law, but as you've rightly described it is a largely loose federation of 7 Emirates.
Using the comparison to AF being the national carrier of the EU vs the UAE is not very good as the EU is not a sovereign nation, whereas the UAE is.

Many comments, for it is not that simple.
1) Yes, the UAE are the sole sovereign state by international law.
2) Within the UAE however, each emirates is sovereign in domestic affairs, but currency & monetary policy.
3) The EU is not a sovereign nation, true, but it is a sovereign entity that signs agreements internationally and EU law prevails over ANY national law in european nations within the scopes defined by the EU Constitution & other EU treaties.

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