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Etihad Airways reported Thursday a second consecutive annual loss, blaming rising fuel prices, the cost of its ambitious turnaround plan and lost business due to the collapse of Air Berlin and problems at Alitalia. United Arab Emirates-based Etihad has been overhauling its business since it made a near $2b loss in 2016, by replacing its top executive, dropping unprofitable routes and retiring costly aircraft among other measures. The state-owned carrier, which competes with Emirates among others, said its losses narrowed to $1.52b in 2017 as it cut costs by 7.3% and its revenue rose by 1.9% to $6.1b. Passenger numbers, however, were flat at 18.6m and it filled an average of 78.5% of its seats, also little changed from 2016. “These are solid first steps in an ongoing journey to transform this business into one that is positioned for financially sustainable growth over the long term,” Etihad’s Group CE Tony Douglas said.<br/>

Virgin Australia and Etihad Airways are still in talks about enhancing their ties, even amid speculation that the Abu Dhabi-based carrier may sell its stakes in other airlines. Rob Sharp, group executive of Virgin Australia Airlines, said the relationship with Etihad is “very sound”. His comments come as Etihad undergoes a strategy review of its equity stakes after reporting $1.52b in losses in 2017 and $1.95b in losses in 2016. “We have a deep relationship with Etihad Airways. That alliance is ongoing. We actually [just] met with them and we were talking about things we can do to continue to enhance that relationship,” Sharp said. Asked whether Etihad will keep its stake in Virgin Australia, Sharp said he could not comment on the issue, adding that Etihad will have to “react to its environment.” “For us, though, the demand for Australia over Abu Dhabi and back is very strong, and the relationship is very sound,” he said.<br/>