Etihad Airways is gearing up for a potential initial public offering (IPO), a first for a major Gulf airline, as it anticipates exceeding its 2023 annual profit in 2024. CEO Antonoaldo Neves emphasized the company’s readiness for an IPO, highlighting improvements in governance, environmental, social, and corporate governance practices, profitability, and balance sheet strength. The move toward a potential listing aligns with the strategy of Etihad Airways’ owner, Abu Dhabi holding company ADQ, which has previously floated companies within its portfolio. Despite the challenging global aviation landscape, Etihad Airways reported a second consecutive annual profit in 2023, with a net profit of Dh525 million ($143 million), and now plans to hire 1,500 to 2,000 employees in 2024, reinforcing its commitment to expansion.
Etihad’s growth strategy involves efficiency measures, cost-cutting, and strengthening its network connectivity. The airline added 30% more capacity in 2023, streamlined network connectivity, and is strategically investing in new routes and training programs. The CEO expressed confidence in exceeding 2023’s profit, citing strong travel demand and a positive economic outlook in markets such as Europe, India, the US, and the GCC. Additionally, the company hedged 50% of its fuel consumption for 2024, providing a comfortable position despite high jet fuel prices. Etihad Airways plans to renew its entire narrow-body fleet over the next five years, with the delivery of 10 Airbus A321LRs from 2025, aiming to boost operations in South-East Asia and Europe. Neves affirmed, “Etihad is back,” signaling a renewed focus on profitability, expansion, and a potential IPO.