Abu Dhabi’s Etihad Airways is expected to continue making losses through to 2022, according to a report by ratings agency Fitch.
The company said there was a “high execution risk” in Etihad’s turnaround plan but affirmed its long-term A rating with a stable outlook due to support from the airline’s owner the Abu Dhabi government, Bloomberg reported.
Etihad is currently in the middle of a restructuring linked to a slowdown in passenger growth and failed investments in foreign airlines like Air Berlin and Alitalia.
The airline posted a $1.5bn annual loss in June and said last month it expected to cut staff after announcing a series of leadership changes.
Group CEO Tony Douglas told Reuters that thousands of employees had left the airline since the overhaul began in 2016.
Fitch said on Wednesday it expected Etihad to remain the smallest carrier among its Gulf peers Dubai’s Emirates and Qatar Airways.
The ratings firm also said the airline had “very weak” financials and lower unit revenues than its Gulf and European peers, despite cost advantages on the latter.
Etihad said in June it would allow some pilots to join Emirates on a secondment and is stopping flights to Edinburgh and Perth in October under plans to reduce capacity. –ME website
