Abu Dhabi’s Etihad Airways has announced a return to profitability and is focusing on enhancing its transparency, governance, and balance sheet to prepare for a potential initial public offering (IPO), according to CEO Antonoaldo Neves.
The UAE carrier revealed net profits for both 2022 and 2023 after several years of significant losses dating back to 2016. Etihad is owned by Abu Dhabi’s sovereign wealth fund ADQ, which has been actively listing various holdings as part of a broader strategy to diversify the emirate’s economy and deepen capital markets.
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Recent reports from Bloomberg suggest that ADQ, which took control of Etihad in October 2022 and appointed Neves as CEO, is contemplating an IPO for the airline possibly as early as this year. Neves emphasized that Etihad is diligently preparing for an IPO, ensuring readiness whenever ADQ makes the decision. However, ADQ has not provided any official comments regarding these speculations.
In a notable shift towards transparency, Etihad plans to release its 2023 annual report by mid-April, marking the first time it will include details of pandemic-related government support. This move aligns with the company’s efforts to enhance disclosure and governance practices.
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Etihad reported a net profit of Dh525 million ($143 million) for 2023 and disclosed a previously unreported net profit of Dh92 million for 2022. Neves attributed the profitability to increased efficiency measures, such as discontinuing unprofitable routes and reintroducing grounded aircraft into service.
The airline aims to triple its passenger numbers and double its fleet by 2030 under its “Journey 2030” plan, representing a shift towards growth after a period of downsizing. Etihad is focusing on strengthening its routes between Southeast Asia, the Gulf, the Indian subcontinent, Europe, and the U.S. East Coast, rather than pursuing ultra-long haul routes.
Etihad’s strategy no longer involves investing in other carriers, having divested its stakes in airlines like Air Berlin, Alitalia, Jet Airways, and Virgin Australia, which faced financial difficulties.
Neves, a seasoned industry veteran who previously led Brazilian carrier Azul through an IPO in 2017, is steering Etihad through its transformation and potential listing, marking a significant chapter in the airline’s journey towards financial stability and growth.
