Etihad Airways Considers Initial Public Offering Amidst Growth
CEO Antonoaldo Neves emphasizes IPO is a natural progression, with no decision made yet.
Etihad Airways, the national carrier of the United Arab Emirates, is contemplating an initial public offering (IPO) as part of its ongoing development strategy, according to CEO Antonoaldo Neves.
He characterized the potential IPO as 'not the end goal but a natural progression' for the airline, which is reportedly ready from both a governance and financial results perspective.
Neves clarified that no decision regarding the IPO has been made yet, as it remains dependent on the shareholders' choice, particularly the sovereign wealth fund ADQ that owns Etihad.
Talks surrounding Etihad’s IPO have gained traction, coinciding with the airline's record financial performance in 2024. The company reported a profit after tax of Dh1.7 billion, attributed to passenger revenue of Dh20.8 billion and cargo revenue of Dh4.2 billion, alongside ongoing improvements in operational efficiency.
Passenger numbers for the airline also soared, reaching over 18.5 million, which signifies a 32 percent increase from 2023 and an 80 percent rise compared to 2022.
Despite the IPO discussions, Neves indicated that the airline's current emphasis is on expanding its global operations rather than solely focusing on the public listing.
He noted the IPO as an option that could facilitate growth in a capital-intensive sector.
Neves expressed positivity regarding the ongoing speculations about the IPO, suggesting that such discussions are indicative of Etihad's overall health and progress in the industry.
He acknowledged the importance of enhancing margins and profitability while ensuring robust support from shareholders, highlighting the strength of the board and the workforce at Etihad.
Neves, who has previously led TAP, the Portuguese national airline, pointed out that offering shares to both institutional and individual investors would align with Etihad's aspirations to become a prominent global travel hub.
In parallel to its IPO considerations, Etihad is also focusing on the expansion of its international routes.
Recently, the airline announced its upcoming daily flights to Addis Ababa, Ethiopia, commencing on October 1, marking this destination as its 15th new route for 2025. This new service is facilitated through a Joint Venture agreement with Ethiopian Airlines.
Furthermore, the airline has entered into a partnership with China Eastern Airlines to enhance connectivity to China.
Neves conveyed the significance of these partnerships, stating they provide customers with increased travel options across various destinations worldwide.
Recent route announcements also include a third daily flight to Moscow Sheremetyevo Airport and a forthcoming service to Sochi, Russia, expected to start on May 29. Additionally, a new direct route to Medan in Indonesia will commence on October 2, further illustrating Etihad's commitment to bolstering its global presence.
He characterized the potential IPO as 'not the end goal but a natural progression' for the airline, which is reportedly ready from both a governance and financial results perspective.
Neves clarified that no decision regarding the IPO has been made yet, as it remains dependent on the shareholders' choice, particularly the sovereign wealth fund ADQ that owns Etihad.
Talks surrounding Etihad’s IPO have gained traction, coinciding with the airline's record financial performance in 2024. The company reported a profit after tax of Dh1.7 billion, attributed to passenger revenue of Dh20.8 billion and cargo revenue of Dh4.2 billion, alongside ongoing improvements in operational efficiency.
Passenger numbers for the airline also soared, reaching over 18.5 million, which signifies a 32 percent increase from 2023 and an 80 percent rise compared to 2022.
Despite the IPO discussions, Neves indicated that the airline's current emphasis is on expanding its global operations rather than solely focusing on the public listing.
He noted the IPO as an option that could facilitate growth in a capital-intensive sector.
Neves expressed positivity regarding the ongoing speculations about the IPO, suggesting that such discussions are indicative of Etihad's overall health and progress in the industry.
He acknowledged the importance of enhancing margins and profitability while ensuring robust support from shareholders, highlighting the strength of the board and the workforce at Etihad.
Neves, who has previously led TAP, the Portuguese national airline, pointed out that offering shares to both institutional and individual investors would align with Etihad's aspirations to become a prominent global travel hub.
In parallel to its IPO considerations, Etihad is also focusing on the expansion of its international routes.
Recently, the airline announced its upcoming daily flights to Addis Ababa, Ethiopia, commencing on October 1, marking this destination as its 15th new route for 2025. This new service is facilitated through a Joint Venture agreement with Ethiopian Airlines.
Furthermore, the airline has entered into a partnership with China Eastern Airlines to enhance connectivity to China.
Neves conveyed the significance of these partnerships, stating they provide customers with increased travel options across various destinations worldwide.
Recent route announcements also include a third daily flight to Moscow Sheremetyevo Airport and a forthcoming service to Sochi, Russia, expected to start on May 29. Additionally, a new direct route to Medan in Indonesia will commence on October 2, further illustrating Etihad's commitment to bolstering its global presence.
