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Khaleej Times
28-04-2025
- Business
- Khaleej Times
Etihad Airways committed to 34 million target despite tariff row, delivery issues, says CEO
Etihad Airways is committed to its target of 33 to 34 million passengers by 2030 despite challenges in terms of deliveries and tariff rows, its chief executive said on Monday. 'As far as tariff (row) is concerned, things are changing so quickly, and in all these situations, we actually may find opportunities. It's early so I wouldn't like to speculate right now and we need to let this settle. We have seen this volatility and are doing great,' Antonoaldo Neves said during a media briefing at the Arabian Travel Market 2025 in Dubai on Monday. Airlines across the industry have been facing delays in deliveries from aircraft manufacturers and now there are some concerns of supply chain issues as well due to tariff war between the US, China and other countries. 'Etihad is very fortunate in terms of delays. Etihad had a very old order booked. The plane we are receiving today was supposed to be delivered before Covid-19. They're so late, so late, so late that there's no further to that. On the widebody aircraft, we are in a very good shape. We ordered it about two years ago, and they've been only three to six months late. So we don't see our growth plan impacted,' Neves said during the media briefing. "In terms of receiving planes, of course, we are not happy about three or six-month delays, but they are not compromising at all our vision for 2030 and plan to get 33-34 million passengers by 2030. We did our homework two years ago and were really quick to make a decision. At the same time, we benefit from the low order book that we have,' he said in reply to a question. The Abu Dhabi-based carrier recorded Dh1.7 billion profit after tax in 2024, driven by Dh20.8 billion passenger and Dh4.2 billion cargo revenues, alongside significant operational efficiency improvements. The airline carried 18.5 million passengers last year, a 32 per cent increase from the previous year, across 80 destinations. In 2025, it plans to carry 21 million passengers across 90-plus destinations and operate a fleet of 115 aircraft. It aims to bring in 1.3 million visitors to the UAE capital this year. The UAE national carrier said that 2025 will be the biggest year in its history. Currently operating a fleet of 100 aircraft, Etihad aims to grow to 170-plus aircraft by 2030. It aims to add 16 new cities including Sochi, Warsaw, Prague, Atlanta, Taipei, Peshawar, Hanoi, and Hong Kong among others. Etihad CEO Antonoaldo Neves said that in case of weakness in one region, the other regions compensate. 'You need to understand the profile of customers. We have a lot of visiting family and relatives and that component of demand doesn't go away, but can be impacted a little bit. In reality, our demand is strong and our network is holding well together. Last week, we had many days of 91-92 per cent load factor, which is very high for this time of the year when we don't have breaks,' he said during the media briefing.
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
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.
Khaleej Times
19-02-2025
- Business
- Khaleej Times
Etihad Airways announces Dh1.7 billion profit after tax in 2024
Etihad Airways today announced its results for the full year 2024, recording strong performance across all key metrics with a Dh1.7 billion profit after tax driven by Dh20.8 billion passenger revenue and Dh4.2 billion Cargo revenue, alongside significant operational efficiency improvements. The airline carried 18.5 million passengers last year, a 32 per cent increase from the previous year, reflecting strong and sustained demand across its expanding network. Strong top-line performance and continued improvements in unit costs drove a remarkable operating result, with EBITDA reaching Dh4.7 billion, a 32 per cent year-on-year increase. Profit after tax for FY24 more than tripled year-on-year, driven by strong momentum in the passenger business, a robust recovery in Etihad's cargo operations, and a significant reduction in net finance costs – down by almost Dh1 billion, or 80 per cent year-on-year – reflecting continuous balance sheet deleveraging supported by strong cash generation. Total revenue saw a remarkable year-on-year increase of 25 per cent to Dh25.3 billion. This growth was driven by a robust performance in both passenger and cargo business. Passenger revenue increased by Dh4.2 billion, or 25 per cent compared to 2023, reflecting an enhanced network and increased capacity. Cargo revenue rose by 24 per cent compared to last year, fuelled by increased capacity and volume (12 per cent increase in cargo leg tonnes carried), alongside improved yields in the second half of the year. In 2024, the airline expanded its operations to over 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, with over 10 of these cities set to begin operations in 2025. The airline's operating fleet continued to expand with the addition of 12 aircraft, including the introduction of a new fleet-type, with six A320 NEOs, and the re-entry into service of its fifth A380. Etihad now operates the youngest and most fuel-efficient fleet in the region, supporting its ESG strategy to minimise carbon emissions while enhancing its service offerings. Throughout 2024, Etihad strengthened profitability and expanded margins through an optimised fleet and network, improved efficiency, and a continued focus on productivity. The airline continued to strengthen its network through 126 interline, codeshare, and strategic partnerships, including a landmark partnership with China Eastern, the first of its kind between a Middle Eastern and Chinese airline, and a strategic partnership with SF Airlines to boost logistics capacity and network reach. Etihad had further increased operational efficiency, with CASK and CASK ex-fuel decreasing by 3 per cent and 4 per cent respectively. Increased efficiency is also evident in costs related to central functions, which grew much lower than capacity.
