Etihad Has $1.87 Billion Loss in Worst Blow to Gulf Carriers
- Abu Dhabi-based airline hurt by low oil price, equity alliance
- Dubai rival Emirates reported first profit drop in five years
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Etihad Airways recorded a $1.87 billion annual net loss, revealing the full extent of the pressures facing Persian Gulf carriers as they grapple with the impact of terrorism on global traffic flows and a low oil price that’s crimped local travel.
The 2016 loss came after Abu Dhabi-based Etihad booked a $1.06 billion charge from writing down the value of aircraft and a further $808 million hit from the reduced value of stakes in so called equity partners including struggling Air Berlin Plc and Italy’s Alitalia SpA, which filed for bankruptcy in May.