Etihad airways reported a massive losses of $1.52 billion ($1.95 billion in 2016) for the fiscal year 2017 ended, despite its revenue increased to $6.1 billion ($5.9 billion in 2016).
The United Arab Emirates’ flagship carrier Etihad said that the losses attributed to the challenges it faced from significant increase in fuel cost and in losses associated with equity partners Alitalia and Air Berlin.
The airline took delivery of 12 aircraft last year, including two Airbus A380s, nine Boeing 787-9s and an A330F. These aircraft replaced 16 older Airbus A340, A330, and A319, thereby kept the average fleet age to less than six years.
“Etihad Airways is exploring options with Boeing to cancel or defer orders for 25 B777X jets worth billions of dollars after its financial strains. The airline is willing to incur penalties for cancellations rather than be saddled with future recurring losses stemming from overcapacity,” the sources told Reuters.