Etihad Airways provided the main points in its six-monthly functionality (S1: January-June) 2020, which saw a smart start to the year, as the airline made quite a move towards the goals of its transformation plan. This included its most productive monthly effects until February, before they took effect on COVID-19, the upcoming closure of foreign borders and the suspension of flights to and from the United Arab Emirates since 24 March.
First Half 2020 performance
Etihad carried 3.5 million passengers in the first part of the year (S1 2019: 8.2 million), a relief of 58% of the same era last year. The average seat load was 71%. The fundamental operational loss for this era increased from $172 million to $758 million (F1 2019: $586 million), due to a minimum of 38% in revenue to USD 1.7 billion (S1 2019: US$2.7 billion). This was partially offset by 27% relief in direct operating prices at USD 1.9 billion (S1 2019: $2.7 billion) and a 21 percent relief in overall prices of US$0.40 billion (S1 2019: UNITED States $0.50), either driven through control load projects and reduced operations. The number of kilometres per seat (SEP) has been reduced by 53% to 23.69 billion (S1 2019: 50.35 billion).
Freight revenue was US$0.49 billion, an improvement of US$130 million (37%) it was in 2019, with 254345 tonnes of goods transported. This is due to increased demand and increased freight rates.
The basic operating profit for the first 3 months of the year advanced by 34%, despite the start of COVID-19, with a 12% relief in the number of passengers and a 9.5% relief in the ASK. Seat occupancy rate in the first quarter 74% (January functionality particularly higher than the same month in 2019, with a seat occupancy of 81.9%) 5.92 US cents. Unit cash in the first quarter declined by 3.3% to US$4.14 (first quarter of 2019: US$4.28), offset by a continued focus on reducing unit costs, which fell 2.4% to 7.01 US cents (first quarter to 7.18 US cents).
However, the airline experienced a significant drop in operating revenue this quarter as a result of COVID-19 flight suspensions, with 70% of its onshore fleet. This was seeing a 99% minimum in the number of passengers and a minimum 95% in the ASK compared to the second quarter of 2019. The seat occupancy rate for this era was 16%, mainly due to the operation of special flights (repatriation) and the resumption of a movement network through Abu Dhabi in early June.
Tony Douglas, CEO of Etihad Aviation Group, said: “Etihad has faced a number of massive and unpredictable demanding situations in the first six months of the year. We started 2020 strongly and recorded encouraging effects as a component of our ongoing transformation program. left us in a strong position when COVID-19 arrived, which allowed us to act swiftly and mobilize all the necessary resources as the crisis worsened, taking primary measures to reduce prices through a wide range of measures.
“While we have revised our prospects for the rest of 2020 to reflect existing realities, we remain positive that as foreign borders reopen, we will increase our flights and bring more passengers safely and more peacefully, with the Etihad Wellness program and our new wellness ambassadors. By September, our goal is to build our global flights through part of our pre-COVID-19 capacity. Looking ahead, we are confident that the UAE is leading the way in finding a vaccine opposite COVID-19. Abu Dhabi’s incredible efforts to ensure the protection and safety of its citizens and visitors will soon allow us to welcome the world to our amazing home. This commitment has effectively been demonstrated through the recent organization of the main UFC occasions in capital.
Etihad operated up to 40 of its fleet of 97 passenger aircraft this quarter, adding Boeing 787 Dreamliners, 777-300ER and Airbus A320 as ventral warehouse shipping ships to complement Etihad Cargo’s operational fleet of six 777-200F shipping ships. Between 25 March and 15 June, more than 640 special passenger flights were operated to forty-five online and offline destinations, the passenger cabins of those aircraft for the shipment of foreigners outside the United Arab Emirates and to bring UAE citizens home.
Adam Boukadida, Chief Financial Officer of Etihad Aviation Group, said: “This year began strongly, building with the positive momentum gained in 2019, and until the end of the first quarter, the airline was on track to reach EBITDA 2020 USD. $900 million (2019: $453 million). Etihad has controlled to an acceptable extent of liquidity despite a sharp decline in revenue, while collecting new liquidity services backed by local and foreign monetary institutions. This was supported by the maintenance of a Fitch “A with a solid perspective” score in April, at the height of the pandemic. Etihad was one of the few airlines in its pre-COVID-19 credit score.
“Greater emphasis is placed on an effort towards increased load optimization and power gains across the enterprise to address obstacles on our way through COVID-19. Our suppliers and partners have also worked a lot with us, adding the organization of paid holidays with donors and discussions about savings with our entire source chain, so that we can resurface together more powerful ».
Network
Etihad is gradually resuming its facilities to more destinations in its global network. This follows the easing of restrictions through UAE regulators for citizens and residents. Everything remains subject to the access and fitness regulations established through the UAE government and those of the final destination.
Throughout August and September, the subject of lifting restrictions and reopening individual markets, the airline aims to fly to 61 foreign destinations from its Abu Dhabi hub, operating approximately 50% of its pre-COVID capacity.
Subject to applicable government approvals, Etihad’s summer program will come with a wider network and higher frequencies to the following destinations to, or to Abu Dhabi:
Middle East and Africa: Amman, Bahrain, Beirut, Cairo, Casablanca, Dammam, Jeddah, Kuwait, Muscat, Rabat, Riyadh, Seychelles Europe: Amsterdam, Athens, Barcelona, Belgrade, Brussels, Dublin, Dusseldorf, Frankfurt, Geneva, Istanbul, London Heathrow, Madrid, Manchester, Milan, Moscow, Munich, Paris Charles de Gaulle, Rome, Zurich Asia: Ahmedabad, Baku, Bangkok, Bangalore, Chennai, Colombo, Delhi, Hyderabad, Islamabad, Jakarta, Karachi, Kochi, Kolkata, Kozhikode, Kuala Lumpur, , Thiruvananthapuram, Tokyo Australia: Melbourne, Sydney North America: Chicago, New York JFK, Toronto, Washington, DC
Etihad Wellness
To protect its visitors, Etihad has introduced Etihad Wellness, a comprehensive fitness and hygiene program, based on strict measures that are already in a position to deal with COVID-19, which is now a major component of the airline’s long-term visitor strategy. The launch of the program was backed by the arrival of specially trained, industry-first wellness ambassadors, who provide essential data and physical attention online via web chat, Abu Dhabi International Airport and in flight, so visitors can more peace of mind.
The global reaction to many facets of the program, adding game-changing wellness ambassadors and large-scale hygiene and fitness protocols, has been incredibly positive. The airline takes the opportunity to expand Etihad Wellness as a key differentiator for consumers by purchasing a high-end product that can guarantee them original care and effective fitness and protection measures, and offer them leading service and hospitality.
Etihad Wellness projects are communicated through an easy-to-use online guide, focused on the main criteria of cleanliness, fitness and hygiene implemented at each level of the visitor’s journey. This includes culinary hygiene in the airline’s food testing services and food research lab, deep air cabin cleaning, check-in, fitness control, boarding, flight and product delight, equipment interaction, arrival and transportation on the floor.
In June, Etihad also introduced a partnership with Austrian health care generation company Medicus AI to launch a COVID-19 threat assessment tool that will allow consumers to make informed decisions.
The workforce
COVID-19 has posed unprecedented demanding situations for all airlines, with a particularly low demand for travel, and Etihad continues to do its best to help its circle of family members of world-class workers at this difficult time. However, due to the seriousness of the industry scenario, the airline has been forced to reconsider the organization founded on the desire to fire its workforce in various spaces of the company to ensure long-term continuity. Temporary wage sacrifices of 25% to 50% have also been introduced throughout the company.
Douglas added: “Etihad, like all major airlines, still did not have a selection to embrace the ambiguity of the scenario on which it was launched, and with wonderful sadness, we had to make incredibly difficult decisions to decrease the length of the workforce through several thousand. Those who left Etihad did so with dignity and their contribution was immeasurable.
“We are incredibly proud of both one and two members of the Etihad family, both of whom have exceeded expectations in incredibly complicated situations to maintain the main symbol of Etihad while maintaining high degrees of service. Etihad entered the COVID-19 era with uncertainty, but re-emerging resilient, even if it is somewhat marked throughout battle, with a renewed focus on its core values. We are training our workers in the organization to supply a new product for a new reality, based on the progression and delivery of Etihad Wellness for the foreseeable future.
Humanitarian flights
Etihad and Etihad Cargo have provided special humanitarian assistance in 60 cities around the world, 40 of which lately do not receive service through the airline’s passenger network or shipments. These include Addis Ababa, Antananarivo, Auckland, Bamako, Banjul, Barbados, Bhubaneswar, Bishkek, Bogota, Bucharest, Buenos Aires, Conakry, Dushanbe, Erbil, Freetown, Grozny, Harare, Havana, Kabul, Kiev, Kinshasa, Kish Island, Larnaca Lima, Lucknow, Makhkalaach, Moroni, N’Djamena, Niamey, Nouakchott, Podgorica, San Jose, Santiago, Santo Domingo, Sofia, Tirana, Wuhan,
Extended program
With the maximum of its passenger planes on the floor in April, May and June, Etihad has embarked on the largest aviation maintenance program in its history. The airline’s MRO division, Etihad Engineering, performed maintenance paints on 97 passenger aircraft, adding 29 Airbus A320 and A321, 10 Airbus A380s, 39 Boeing 787s and 19 Boeing 777-300ER. This ranged from minor maintenance, such as seat maintenance and in-flight entertainment formula updates, to highlighting engine settings and scheduled modifications on multiple aircraft, eliminating the desire to remove them from service when scheduling resumes. The extensive programme is in addition to the maintenance of the regime at normal intervals.
Sustainability
Etihad continues to be a leader, with partners in the United Arab Emirates and around the world, innovating in cutting-edge and effective tactics to mitigate the environmental impact on aviation. Etihad Aviation’s sustainable progression strategy is aligned with the 17 UN Sustainable Development Goals. In January, in the presence of the European Commission, Etihad announced our commitment to 0 net carbon emissions by 2050 and halve emissions from 2019 to 2035.
Following the launch of the Greenliner program in partnership with Boeing in November 2019, Etihad won a special Boeing 787-10 logo in January, with a special ‘green’ livery to highlight its role in sustainable progression studies activities, to drive innovation and sustainability in The Operational Space. To celebrate Ireland’s National Day, Etihad has deployed the Abu Dhabi Greenliner to Dublin. An optimized steering profile reduced time by 40 minutes, fuel by 800 kg and CO2 by 3 tons.
The same month, when Etihad announced its sustainability commitments in Brussels, the airline operated a Boeing 787 EcoFlight from Abu Dhabi to the EU house. The flight had an optimized direction via Eurocontrol; single-use plastics; and other energy power initiatives, adding the use of electric tractors in downtown Abu Dhabi, reducing the use of APU and optimizing drinking water levels.
“The transparent purpose of moving forward is to adapt our transformation plan to reflect new market conditions, but without converting our general purposes or our sustainable progression purposes and commitments. We expect continued volatility for some time as the world strives to finish COVID-19 and verify that methodologies and protocols evolve to the new standard.
“We know that markets will rebound and that the world will rediscover the wonder of flying once again. When this is the case, our consumers will appreciate Etihad Wellness’s proposal more than ever, and we are in the most productive position to offer the world-class safety, safety and delight they expect from Etihad as a true full-service airline, he concludes.
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