Back in 2019 Etihad airways suffered through the loss of US dollar 0.8 billion and in 2020 it exacerbates to US dollar 1.7 billion. Etihad airways upon further questioning about the loss blamed Covid-19 as for longer durations flights were banned.
Reasons behind the loss
In 2019 the flow of passengers was around US dollar 17.5 million which then reduced to US dollar 4.5 million abruptly. The reason behind this huge decline was to reduce demands for flights and the capacity to carry passengers also decrease as per social distancing needs.
The same trend goes for the flight passenger capacity; it was around US dollar 104 billion in 2019 but then in 2020 it falls to US dollar 37.5 billion only.
Passenger profits recorded in 2019 were approximately US dollar 4.8 billion which then reduced to US dollar 1.2 billion in 2020. A major reason behind the dropping profits was the termination of the flights going to and coming from the United Arab Emirates from March to June to control and stop the spread of Covid-19 as per the guidelines of the government of UAE.
When the data were checked, it was seen that over 80 percent of the total passengers that flew in 2020 flew in the first 3 months that was before Covid-19. This depicts that how the global pandemic has contributed to the overall loss in Etihad airways.
Message from Etihad Airways
Covid-19 has hugely impacted the aviation industry as flights were terminated, passenger capacities were reduced, and the flow of passengers also decline due to the fear of Covid-19. but the Etihad airways was always firm and is ready to play an important role while the world is now ready to fly. A very special thanks from the executive officer of Etihad to its shareholders and to our dedicated people who have trusted Etihad for their journey. Our airlines have to make sure for the health and safety of its passengers and are trying to reshape our business for a speedy recovery.