Latest news with #Dh1.7-billion
Khaleej Times
20-03-2025
- Business
- Khaleej Times
Etihad IPO not the end goal but a natural progression, says airline CEO
The highly anticipated Etihad Airways initial public offering (IPO) 'is not the end goal but a natural progression' for the UAE national carrier, the company CEO told Khaleej Times, noting Etihad is ready for public listing from a governance and financial result standpoint. Antonoaldo Neves, Etihad Airways CEO, however, underscored 'no decision has been made on IPO, as it is the shareholder's decision." Etihad, established 2003, is owned by sovereign wealth fund ADQ, which had not made any comment yet on the matter. There have been talks about Etihad's plans to make its stock market debut this year, following a record performance in 2024 and robust growth in passenger numbers over the past two years. Etihad posted a record Dh1.7-billion profit after tax last year – driven by Dh20.8 billion in passenger revenue and Dh4.2 billion in cargo revenue, alongside significant operational efficiency improvements. Also in the full year of 2024, the UAE national airline carried more than 18.5 million passengers, up by 32 per cent from 2023, or an 80 per cent increase when compared to passenger numbers in 2022. With its balance sheet and corporate governance ready for an IPO, Neves said Etihad's focus at the moment is not on the IPO but on expanding its global reach. Speaking to Khaleej Times during a flight to Addis Adaba, where Etihad announced its latest destination in Ethiopia, Neves said: 'The IPO is not a necessity but an option – a means to expand (Etihad) in a very capital-intensive business.' Neves, however, did not hide his elation over repeated speculations on Etihad IPO, noting that constant talks about going public mean the airline 'is doing good.' 'Because if we're doing bad, there would never be speculation on any IPO, right?,' he added. 'We have expanded our margins and improved profitability. But there's still a lot of things that we need to do and, thankfully, we have the right support from our shareholders. We have a great board and we have great people working for the company,' he continued. The Brazilian CEO, who previously served CEO and board member of TAP, the national airline of Portugal, noted offering shares to institutional and individual investors would be 'a natural progression' for Etihad as it ramps up effort to become a global travel hub. 'It's (IPO) natural, right?,' he added, noting ADQ itself is a listed company. Neves reiterated running an airline is a highly capital-intensive business, where you need to have flexibility and access to a number of strong foundation instruments such as IPO. He assured from a transparent corporate governance perspective and financial result standpoint, Etihad has met all criteria to offer an IPO. 'The airline is doing great, but the decision to do it (IPO) remains with the shareholders. If we're gonna do it or not, only time will tell,' he added. Expanding routes Meanwhile, Neves said Etihad's focus at the moment is expanding its global network. Addis Adaba is its 15th new destination for 2025 and the national carrier will start its daily nonstop flights from Abu Dhabi to Addis Ababa on October 1. This was made possible following the signing of a Joint Venture (JV) agreement with Ethiopian Airlines. Neves underscored Etihad 'is working hard to expand partnerships' globally. He said: 'We earlier announced a partnership with China Eastern to improve connectivity to China. (Partnerships) are crucial for Etihad because they enable us to offer customers more travel options to various destinations worldwide.' Early this week, Etihad announced its third daily flight to Moscow Sheremetyevo Airport (SVO), as well as a new service to Sochi, Russia's premier resort destination on the Black Sea coast, starting May 29.
Khaleej Times
19-03-2025
- Business
- Khaleej Times
UAE: Etihad to start daily flights to Ethiopia from October 1
Etihad will start daily nonstop flights from Abu Dhabi to Addis Ababa beginning October 1, the UAE national airline announced on Wednesday, following the signing of a Joint Venture (JV) agreement with Ethiopian Airlines. The Etihad–Ethiopian JV, signed in Addis Adaba, will enable both airlines to collaborate in developing and expanding routes between the UAE and Ethiopia. Addis Ababa marks Etihad's 15th new destination for 2025, while Abu Dhabi becomes Ethiopian Airlines' 145th global destination. 'This partnership is designed to deliver greater value to passengers by strengthening links between Africa, the Middle East, and Asia, resulting in a more seamless and comprehensive combined network,' noted the two national airlines. Ethiopian Airlines will commence services from Addis Ababa Bole International Airport (ADD) to Abu Dhabi International Airport (AUH) on July 15, while Etihad Airways will introduce daily flights to Addis Ababa starting October 1. Around 200,000 Ethiopians are reportedly living and working in the UAE, and Ethiopia is among the countries that the UAE wants to increase its annual exports to. Etihad Airways CEO Antonoaldo Neves added: 'We are excited to extend a warm welcome to Ethiopian travellers visiting Abu Dhabi, where they can experience our renowned hospitality and immerse themselves in the rich culture of our city. From breathtaking beaches and world-class cultural landmarks to thrilling theme parks and tranquil desert landscapes, Abu Dhabi offers a diverse array of attractions for all to enjoy.' Mesfin Tasew, Group CEO of Ethiopian Airlines, for his part, remarked: 'This collaboration (with Etihad) marks a significant milestone in our efforts to enhance connectivity between Africa, the Middle East, and Asia. By leveraging our combined networks, we are committed to providing our passengers with greater travel convenience and exceptional service.' More routes and IPO Strengthening its global presence, the Abu Dhabi-based carrier on Monday announced its third daily flight to Moscow Sheremetyevo Airport (SVO), increasing the service to 21 flights per week. In addition to the Moscow frequency increase, Etihad will also start a new service to Sochi, Russia's premier resort destination on the Black Sea coast, starting May 29. Last week, Etihad also announced a new direct route to Indonesia's popular island destination of Medan commencing on October 2. Meanwhile, Etihad Airways is reportedly set to announce a $1 billion (Dh3.67 billion) initial public offering (IPO), news agency Reuters reported last month, quoting two sources. This comes following Etihad Airways' strong 2024 performance, including 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. If the stock launch pushes through, Etihad would be the second company this year to offer shares to institutional and individual investors. 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
25-02-2025
- Business
- Khaleej Times
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.
