Etihad Airways CEO Antonoaldo Neves stated on Tuesday that the Gulf airline has no immediate plans to go public, as it has sufficient resources to “self-fund” its $20 billion growth plans for the next decade.
In an interview, Neves mentioned that while the carrier is prepared for an initial public offering, the final decision lies with its shareholder, the 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,” he told Reuters. “The time has not come yet.”
Etihad, which commenced operations in 2003, invested billions of dollars in acquiring minority stakes in other carriers to create a larger network through its Abu Dhabi hub and better compete with Gulf peers Emirates and Qatar Airways. However, many of those airlines faced financial difficulties, and ADQ took over Etihad in October 2022.
Neves, who was appointed as CEO simultaneously, stated that the United Arab Emirates’ national carrier is focusing on organic growth as mergers and acquisitions are not part of its strategic mandate.
Etihad plans to enhance Abu Dhabi’s role as a travel hub connecting Asia and Europe. Neves said the airline does not require an IPO to finance its growth plans, which he estimated would exceed $20 billion over the next decade. “We believe we can self-fund that,” he said.
Neves also downplayed growing global economic uncertainty, geopolitical, and trade tensions. He emphasized that the carrier remains committed to its network expansion strategy as the Middle East’s growth prospects would support air travel demand.
Etihad’s passenger traffic has increased by 17% year-on-year this year, and its load factor—a measure of how full its planes are—rose to 88% from 86% a year ago.
While bookings slowed down during the Israel-Iran conflict, Neves noted that sales fully recovered by the end of July. “People postponed their plans, but they did not cancel their plans,” he said.
Etihad’s fleet consists of more than 100 aircraft, with a mix of Airbus and Boeing models. In May, it confirmed an order for 28 wide-body Boeing aircraft, including the 777X.
Neves mentioned that the 777X order is expected after 2030 and will replace Etihad’s Airbus A380 planes. More aircraft deals are anticipated as the airline is looking to tap into the secondary market, including lessors for additional jets, he added.
“It’s not necessarily with OEMs. It can be with lessors, it can be secondhand planes.”
