Etihad still in the red, looks into Boeing 777x order cuts
Etihad Airways could cancel or delay its order of 25 B777X from Boeing as part of its financial strategy. One year after its record loss of $2 billion in 2016, the company still reports a loss of $1.5 billion in its 2017 financial results.
Etihad is a launch customer of Boeing new model, along with fellow Gulf companies Emirates and Qatar Airways. However, the Abu-Dhabi-based airline estimated it did not need the ordered airliners and according to Reuters sources would rather pay compensations to Boeing for breach of contract than facing losses from overcapacity.
The state-owned carrier managed to reduce its cost by 7.3% while increasing revenue by 1.9$ in 2017. In total, Etihad reduced loss by $432 million and improved its operating performance by 22%, despite increasing fuel cost and Alitalia and Air Berlin failures.
In 2017, Etihad Airways received twelve new planes including two Airbus A380s, nine Boeing 787-9 Dreamliners and one Airbus A330Fs. These aircraft replaced 16 older Airbus A340s, A330s, A319s and A330Fs, which ceased operations, reducing its fleet by four aircraft to 115, and the average age of its fleet to just six years.
The company has pending orders from more than 160 planes from both Boeing and Airbus, including the B777Xs. Airbus could also see cuts in its orders of 36 A320/321neos and 62 A350s.
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