Etihad clears the decks - Leeham News
Alitalia, its largest airlines partner, is in bankruptcy and no one wants to buy the remains. What happens with Alitalia will eventually affect Etihad. The partner pains are not over.
Click Like to Follow Fliegerfaust Facebook page to get the News ASAP / Share to share this post now.
August 2, 2017, ©. Leeham Co: "Etihad, where to now?" was our headline on our May review of the Gulf airline. The 2016 revenue and earnings were not clear at the time.
Etihad group has now released the results, with a group loss of $1.9bn on revenues of $8.4bn. This is a shortfall of almost a quarter of the turnover, a dramatic change from a profit of $259m the year before.
Clearing the decks
Etihad group says the trouble areas during 2016 were the valuation of its fleet and its investments in partner airlines. We wrote about the latter in the May article. Let's look closer at the main 2016 problem according to Etihad, the fleet values.
Here are Etihad's words in its results release from 27th of July:
"Total impairments of US$ 1.9 billion included a US$ 1.06 billion charge on aircraft, reflecting lower market values and the early phase out of certain aircraft types. There was also a US$808 million charge on...