LONDON — The cargo wing of Etihad Airways has announced that the airline will be selling its entire fleet of Airbus A330 Freighters and keeping its 777 Freighters only.
This comes following a few months after the carrier grounded the entire fleet.
The group has said that they are in “advanced stages” of selling around five to ten aircraft to new prospective owners.
A spokesperson for Etihad said the following: “It is normal airline industry business practice to continuously review aircraft requirements and to make modifications to the fleet when and where necessary.”
The carrier has established that once the A330F’s are sold to the new carriers, then they will continue to utilize an all-Boeing fleet in their cargo wing, being five 777 Freighters respectively.
These moves are one of many to try and get the airline out of the $2.01 billion loss that they posted in 2016 and has recently slowed their losses, but citing the Alitalia and Airberlin closures as one of the big hitters in the loss-making.
The carrier has however reduced losses by around $500 million currently due to the annual results showing higher revenues and a reduction in debt.
Current numbers this year has reduced the losses to $1.52 billion compared to $1.95 billion the previous year, with revenues rising by nearly 2% to $6.1 billion from $5.9 billion in 2016.
Etihad also saw them carry 18.6 million passengers last year and has improved unit cost efficiencies by 7.3% despite the $337 million increase in fuel prices.
They have managed to offset this a little by reducing their general and administrative expenses by $162 million respectively.
It is very clear that Etihad is wanting to do what they can to bring the carrier back into profitability as soon as. Other actions that they have taken out is giving their pilots permission to start flying with Emirates.
Whilst they could retain their rank at the airline, they would have been ultimately paid by Emirates instead, which would have reduced costs significantly.
However, it may be sometime before we see Etihad post a profit.
In order for them to reduce this $1.52 billion loss that they currently have, they need to continue with their current strategy of cost-saving otherwise any expensive moves could indeed put the airline under.