Inflight PJs have joined the cutlist on Etihad Airways, with the Gulf airline no longer handing out free sleep suits to business class passengers.

After hearing a series of anecdotal reports from readers Australian Business Traveller contacted Etihad Airways, with a spokesman for the airline confirming that  "Etihad Airways no longer provides complementary loungewear, previously available only on ultra-long haul flights, in business class."

But all is not only if you're in the very pointy end, as "loungewear will continue and remain exclusive to The Residence and first class only.”

Pyjamas are the latest casualty at the belt-tightening airline, which has also axed its free chauffeur drive service for business class and first class passengers; imposed data limits on inflight Internet plans, and closed its Six Senses airport lounge spa at London's Heathrow Airport.

The airline also tightened up its Etihad Guest frequent flyer scheme this week, although Gold-grade members gained access to the Abu Dhabi business class lounges.

As previously reported, Etihad has also joined a move by Emirates to ope the doors of its 'premium' airport lounges, with travellers now able to buy their way into everything from the flagship first class and business class lounges at Abu Dhabi to most other airport lounges including Sydney and Melbourne at rates ranging from A$72 to A$266 depending on the lounge and your original class of travel.

Etihad Airways is also reeling from failed investments in Alitalia, Air Berlin and the Swiss-based Etihad Regional, and in May reported a US$1.9 billion loss for its 2017 fiscal year.