Abu Dhabi: Will Etihad launch IPO after 2024's Dh1.7-billion profit?
The UAE's national airline, Etihad Airways, is reportedly set to announce a $1 billion (Dh3.67 billion) initial public offering (IPO) this week, news agency Reuters reported on Tuesday, quoting two sources.
If the stock launch pushes through, Etihad would be the second company this year to offer shares to institutional and individual investors, following the announcement by Alpha Data early this month to list on the Abu Dhabi Securities Exchange (ADX).
Etihad would also become the second UAE airline to go on public listing, nearly 20 years after Air Arabia was listed on the Dubai Financial Market in July 2007.
Khaleej Times reached out to Etihad but has not received a response confirming or denying the report.
This is not the first time news about Etihad Airways making a stock market debut has hit the headlines. Reuters reported as early as September last year that the Abu Dhabi-based carrier, owned by investment and holding company ADQ, would go public 'no sooner than 2025'.
An airline spokesperson earlier told Khaleej Times: 'Etihad does not comment on rumour or speculation.'
Quoting two sources, Reuters noted the soon-to-be Etihad IPO would comprise 20 per cent of the business or 2.7 billion in primary shares, 'in which proceeds go back to the company rather than the main shareholder.'
The selling of new shares will fund Etihad's growth ambitions under its "Journey 2030" strategy, the sources said.
Strong performance in 2024
Last week, Etihad Airways announced a strong 2024 performance across all key metrics with a Dh1.7-billion profit after tax.
Etihad noted the record profit was driven by Dh20.8 billion in passenger revenue and Dh4.2 billion in cargo revenue, alongside significant operational efficiency improvements.
The national airline carried 18.5 million passengers last year, up by 32 per cent from 2023, 'reflecting strong and sustained demand across its expanding network.'
Last year, Etihad expanded its operations to more than 1,700 weekly flights and increased frequencies on 25 routes over the past two years. It also launched more than 20 new destinations, such as Boston, Jaipur, Bali, and Nairobi, alongside summer hotspots like Antalya, Nice, and Santorini – aside from adding 10 more cities this year.
Etihad is also adding to its fleet 12 aircraft, including six A320 NEOs, and the re-entry into service of its fifth A380. The airline now operates the youngest and most fuel-efficient fleet in the region, supporting its ESG (environmental, social and governance) strategy to minimise carbon emissions while enhancing its service offerings.
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