Abu Dhabi-based Etihad Airways has reported a net loss of $1.87bn on the back of $8.36bn revenues for the full year 2016, according to a public statement released on 27 July.

The loss is attributed to one-off impairments, worth $1.06bn, on aircraft due to lower market value and early phase out of certain planes and the rest, $808m, is due to asset charges and financial exposures to equity partners Alitalia and AirBerlin.

Passenger revenue remained flat at $4.9bn, while cargo revenue dipped from $1bn in 2015 to $0.9bn last year.

The company did not specify other revenue sources.

The company also cited that legacy fuel hedging contracts had a negative bearing on its financial performance in 2016, although this exposure is expected to have less  financial impact during 2017.

Ray Gammell, interim group CEO, said they are focused on maintaining the performance of its core airline business even amid difficult market headwinds.

Peter Baumgartner, CEO of Etihad Airways, said they will innovate and reinvent to address the key issues of overcapacity, declining market sizes on key routes, and changing customer behaviour due to a weak global economy that affects spending appetite.

The airline has been undergoing a restructuring programme. Its president and CEO since 2006, James Hogan, has stepped down from his post while chief financial officer James Rigney is set to vacate his post later this year.