For the first half of the year, the airline reported a record profit after years of losses. The details should be looked at.
The core operating profit for the first half of the year was $296 million, compared to a $392 million loss for the same period in 2021. Fuel costs have increased by more than 50% compared to the same time last year.
The first half of 2020 and the first half of 2021 have a lot in common.
The first half of the year was bad for airlines, so that isn't a good comparison to how things were pre-pandemic. There were some major challenges that pre-pandemic Etihad faced.
It is interesting to note the highlights of the six month period, as there are some impressive results there.
There is always a level of skepticism when it comes to operating results of government-owned airlines. Is it safe to trust these results? Perspective is important. The ability of the government to provide financing at a scale and at rates that other airlines may not have access to is something that is different when the government owns the airline.
In relation to the past results, I think this profit is real. The economics in the rest of the world are very similar.
The airline lost $6 billion in the years leading up to the epidemic. A new plan was put in place to transform the airline.
The worst airline investment strategy in history was engaged by Etihad prior to the Pandemic. Jet Airways, which was taken over by the Italian government, is one of the airlines that the Abu Dhabi-based airline invested in.
At one point, Etihad had hundreds of planes on order and was planning to compete head-on with other airlines.
The government of Abu Dhabi seemed to be on board with this strategy for a while. The airline has undergone a major transformation, which has included scrapping the ridiculous Etihad Airways Partners concept, canceling all kinds of aircraft orders, and more.
It is now focused on being profitable rather than sexy. Tony Douglas has taken a different approach to what James Hogan did. Both of their plans reflect what the government wants.
We all miss the sexiness and intrigue of the old Etihad. You can't blame the airline for not wanting to make a lot of money.
The first half of the year was a record profit for the airline. This has been a good time for the airline industry, but more than that it shows the transformation of the company. The airline was losing billions before the economic downturn.
I am happy to see that the carrier is sustainable, even though it isn't as interesting as it used to be.
What do you think about the results of the company?