Etihad Airways, headquartered in Abu Dhabi, has rebounded to profitability and is actively enhancing transparency, governance, and financial stability in anticipation of a potential initial public offering (IPO), as stated by CEO Antonoaldo Neves.
The airline, owned by Abu Dhabi’s sovereign wealth fund ADQ, recently disclosed net profits for 2022 and 2023, marking a positive turn after facing substantial losses since 2016.
Reports suggest that ADQ, aiming to diversify the emirate’s economy, is contemplating an IPO for Etihad, possibly within the current year. Neves emphasized Etihad’s commitment to IPO readiness, recognizing ADQ’s overarching objective to list its portfolio companies.
With a 40% year-on-year increase in passenger numbers in 2023, reaching 14 million, Etihad is aligning its growth trajectory with the “Journey 2030” plan, aiming to triple passenger figures and double its fleet by 2030. This positive shift follows six years of strategic downsizing, during which Etihad divested stakes in Air Berlin, Alitalia, Jet Airways, and Virgin Australia.
In a departure from previous practices, Etihad is concentrating on connecting Southeast Asia, the Gulf, and the Indian subcontinent to Europe and the U.S. East Coast through frequent flights, foregoing a focus on ultra-long-haul routes. Currently operating 80 Boeing and Airbus passenger jets and five freighters, Etihad’s transformation signifies a strategic repositioning for sustained growth, according to Khaleej Times.