Etihad Airways reported a loss of $1.28 billion for its core airline operations in 2018.

That’s actually an improvement of 15 percent over 2017, when the airline lost $1.52 billion.

Part of the loss could be attributed to a passenger decrease. In 2018, Etihad flew 17.8 million passengers, lower than the 18.6 million seen in 2017. The load factor decreased from 78.5 percent to 76.4 percent.

The airline’s yield increased by 4 percent, thanks to “capacity discipline, network and fleet optimization, and growing market share in premium and point-to-point markets.”

Etihad is undergoing a five-year transformation program, involving route rationalization; removal of premium chauffeur drive services at international destinations; introduction of buy-on-board choices; launch of a new Economy Space seating option; and the outsourcing of selected lounges to No1 Lounges.

The airline dropped several routes that weren’t profitable in 2018, including Tehran (IKA), Jaipur (JAI), Entebbe (EBB), Dallas (DFW), Ho Chi Minh City (SGN), Dhaka (DAC), Dar es Salaam (DAR), Edinburgh (EDI) and Perth (PER).

“In 2018, we continued to forge ahead with our transformation journey by streamlining our cost base, improving our cash-flow and strengthening our balance sheet,” said Tony Douglas, group chief executive officer, Etihad Aviation Group. “Our transformation is instilling a renewed sense of confidence in our customers, our partners and our people. As a major enabler of commerce and tourism to and from Abu Dhabi, we are intrinsically linked to the continued success of the emirate.”