According to industry and company sources, Abu Dhabi's Etihad Airways has laid off hundreds of workers this month, including cabin personnel, after the coronavirus pandemic forced the company into ground operation.
The government-owned airline, which as of August 2019 had 20,530 workers, grounded passenger flights in March and a month later disclosed it had placed a big number of workers redundant.
Etihad Airways becomes the latest in a host of airline companies announcing plans to downsize as the global health crisis pummeled the air industry.
An Etihad spokesperson, in a disclosure to CNBC, said the pandemic has brought "unprecedented challenges to businesses around the world, and Etihad is no exception."
The spokesperson added that air travel demand will be significantly reduced in the near future and the company must make tough choices to make sure Etihad will weather the storm.
The Abu Dhabi-headquartered Etihad Aviation Group, which has 20,369 workers under its payroll at the end of last year, did not specify how many staff were made redundant or in which airline department.
The struggling airline company has slashed salaries and grounded its fleet after the United Arab Emirates halted commercial flights in March to avert the spread of the disease. Etihad operates repatriation flights to and from its hub in Abu Dhabi while the airline continues to operate its cargo services.
Reuters had earlier revealed that Etihad laid off hundreds of workers this month in order to reduce expenses and preserve liquidity. Citing sources, the airline had then announced additional jobs were seen to be affected.
Etihad - the UAE's flag carrier and the country's second biggest airline, has lost around $5.5 billion since late 2016, and has cut salaries as worldwide travel has been reduced to a near standstill.
Etihad has operated some commercial flights since March, a huge volume for foreigners exiting the UAE and stated it is looking to restart regular flights next month.
Some countries are starting to come out of shutdowns, although the airline market has warned it could take years for demand for travel to normalize.
Etihad had been hoping to become profitable in the next three years, a goal that now looks doubtful given the current state of global air travel demand and the long-term effects of the pandemic.
Meanwhile, the UAE's largest carrier, Dubai-headquartered Emirates Airline, has also announced a hit to sales because of the coronavirus and large-scale lockdowns. The Emirates Group is said to be slashing around 30,000 jobs, though the airline has yet to confirm this.
