Emirate denies reports of Etihad takeover

DUBAI - Dubai's Emirates Airline on Thursday denied reports it is in talks to acquire struggling Abu Dhabi carrier Etihad.

Bloomberg News reported government-owned Emirates, the leading airline in the Middle East, was in "preliminary" talks to take over Etihad -- a move that would potentially create the world's largest airline in terms of passenger traffic.

Emirates denied the report when contacted.

"There is no truth to this rumour," said a spokeswoman for the airline.

Etihad Airlines, based in Abu Dhabi, has battled to break even. The company announced losses of $1.87 billion last year, linked to its partial purchase of Alitalia.

Emirates in May reported its net profits had more than doubled in 2017, linked mainly to a rise in cargo as well as the layoff of some 3,000 employees.