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Etihad Airways Half-Year Loss Widens Amid Border Closures

Bloomberg logoBloomberg 8/6/2020 Layan Odeh
a large passenger jet sitting on top of a runway: An attendee enters an Airbus SE A380 passenger aircraft, operated by Etihad Airways PJSC, during the 15th Dubai Air Show at Dubai World Central (DWC) in Dubai, United Arab Emirates, on Monday, Nov. 13, 2017. The biennial Dubai expo is an important venue for manufacturers to secure deals for their biggest and most expensive jetliners. © Bloomberg An attendee enters an Airbus SE A380 passenger aircraft, operated by Etihad Airways PJSC, during the 15th Dubai Air Show at Dubai World Central (DWC) in Dubai, United Arab Emirates, on Monday, Nov. 13, 2017. The biennial Dubai expo is an important venue for manufacturers to secure deals for their biggest and most expensive jetliners.

(Bloomberg) --

Etihad Airways’ losses climbed by almost a third in the first half, after the coronavirus pandemic reduced travel to a trickle.

The core operating loss widened to $758 million in the first 6 months of 2020, a 29% increase from a year earlier, the airline said in a statement on Thursday. Revenue dwindled by 38% to $1.7 billion.

The long-haul carrier, which has been overhauling its cost structure since 2017 after a string of failed investments, was forced to make further cuts, including staff layoffs and temporary salary decreases ranging from 25% to 50%.

“We have had to make some extremely difficult decisions to reduce the size of the workforce by several thousand,” said Chief Executive Officer Tony Douglas.

Etihad, which raised liquidity from local and international lenders, expects to boost capacity to about 50% of its pre-covid level by September.

More from results

Passenger numbers fell 58% to 3.5 millionAverage seat load factor stood at 71%Direct operating costs were down 27% to $1.9 billionCargo revenue increased 37% to $490 millionPrior to the pandemic, the airline was on track to almost double its Ebitda to $900 million

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