Abu Dhabi's national carrier Etihad reported a major operating loss of $ 1.7 billion in 2020, reflecting the heavy toll from the COVID-19 pandemic, AFP reports.

Etihad reported revenues of $ 2.7 billion in 2020, up from 5.6 billion a year earlier, attributing the sharp decline to significantly fewer people traveling as the growing pandemic wreaked havoc on air travel.

But the airline, one of the Middle East's leading air carriers, faced financial losses long before the pandemic wiped out the global aviation industry. Since 2016, Etihad has lost a total of $ 5.62 billion as it actively bought up stakes in airlines from Europe to Asia to compete with other leading airlines in the region.

Thanks to cost-cutting measures, the company was just starting to recover from economic troubles early last year. It announced the sale of 38 aircraft to an investment firm to boost profits in a $ 1 billion deal.

Then a pandemic broke out and the United Arab Emirates halted flights last March to stem the spread of the virus. 

Passenger traffic fell to 4.2 million from 17.5 million a year earlier, according to the airline. Aircraft passenger capacity decreased by 64%. In the first half of 2020 alone, the operator lost $ 758 million. The losses forced the airline to cut its staff by 33% and wages by 25-50%.