Etihad Airways has no immediate plans to go public as the Gulf carrier is confident it can finance its ambitious $20 billion expansion over the next decade without tapping equity markets, its chief executive said.
Speaking to Reuters on Tuesday, CEO Antonoaldo Neves said the decision on an initial public offering ultimately rests with Etihad’s owner, Abu Dhabi sovereign wealth fund ADQ.
“Any decision about an IPO is much more a broader decision from the shareholder rather than any specific decision related to Etihad,” Neves told the news agency. “The time has not come yet.”
Founded in 2003, Etihad previously pursued an aggressive strategy of investing in other international carriers in a bid to expand its global reach. Those bets largely soured, and ADQ took over the airline in October 2022. Neves, who was appointed CEO at the same time, has since steered the company toward organic growth, ruling out mergers and acquisitions as part of its current mandate.
The airline’s 10-year strategy is focused on strengthening Abu Dhabi’s role as a hub connecting Asia and Europe. Neves estimated the investment required would exceed $20 billion, but stressed the company could fund this internally.
“We believe we can self-fund that,” he said, brushing aside concerns about geopolitical tensions and global economic uncertainty. Passenger traffic is up 17 per cent so far this year, with the load factor rising to 88 per cent from 86 per cent a year earlier.
While bookings briefly dipped during the Israel-Iran conflict, Neves said demand had rebounded by the end of July. “People postponed their plans, but they did not cancel their plans,” he said.
Etihad currently operates more than 100 aircraft across Airbus and Boeing models. In May, it confirmed an order for 28 Boeing wide-body jets, including the 777X, which will begin arriving after 2030 to replace its Airbus A380 fleet. Neves added the airline is also exploring deals in the secondary market through lessors or pre-owned planes.
“It’s not necessarily with OEMs. It can be with lessors, it can be secondhand planes,” he noted.
