Etihad CEO Says No Hurry for IPO, Funding Growth Internally

Post by : Monika

Photo:Reuters

On September 2, 2025, the CEO of Etihad Airways, Antonoaldo Neves, made a clear statement about the airline’s future. He said the company has no immediate plans to go public by selling shares in the stock market. This process, known as an Initial Public Offering (IPO), allows companies to raise money from outside investors.

Neves explained that Etihad is already “IPO-ready”, meaning it has everything prepared in case its owners decide to take that step. But for now, the airline feels no urgency. According to him, Etihad has enough financial strength to grow on its own. Over the next ten years, the company plans to invest $20 billion into expansion and improvements, all funded internally without needing outside help.

The final decision about whether Etihad will one day sell shares belongs to ADQ, Abu Dhabi’s sovereign wealth fund. ADQ is the government-owned fund that controls the airline. Since they became the main decision-maker in 2022, Etihad’s path has shifted toward careful, steady growth.

Why Etihad Feels No Rush

Etihad Airways has had ups and downs in the past. Once known for spending big and buying stakes in other airlines, the company faced financial struggles that forced it to rethink its strategy. Under ADQ’s guidance, the airline no longer focuses on risky takeovers. Instead, it now wants to build organic growth—meaning growth that comes naturally from its own business rather than through outside purchases.

CEO Neves explained it simply: Etihad is financially stable today. With strong cash flow and higher passenger numbers, it can support its growth plans without depending on stock market investors. For him, an IPO is not a tool for survival but an option for the future if ADQ sees a benefit in it.

“Etihad is ready for an IPO,” Neves said, “but this choice belongs to ADQ.”

This approach allows the airline to focus on its long-term mission—making Abu Dhabi a world-class travel hub—without being distracted by the pressure of quarterly earnings reports or shareholder demands.

How Etihad Is Expanding

• Even without an IPO, Etihad is growing strongly. Its latest numbers show that passenger demand is rising quickly:
• Passenger traffic grew by 17% compared to last year.
• The load factor—the percentage of seats filled on flights—rose from 86% to 88%. This means Etihad’s planes are flying fuller than before, improving efficiency and profits.
• Etihad’s fleet is also expanding:
• The airline currently operates over 100 aircraft.
• It recently placed an order for 28 new Boeing wide-body planes, including the advanced 777X model. These aircraft are expected to gradually replace the giant Airbus A380s after 2030.
• To stay flexible, Etihad is also open to leasing planes or buying them secondhand, not only relying on new orders directly from manufacturers.
• This combination of new aircraft orders and fleet flexibility gives Etihad room to adjust depending on demand and market changes.

Challenges in the Global Market

No airline can escape the effects of global problems. Etihad, like all carriers, faces a world filled with economic uncertainty and political tensions. Rising fuel prices, currency changes, and conflicts in different regions all affect international travel.

Earlier this year, there was a drop in bookings due to conflict in the Middle East. However, Neves said that most passengers only postponed their trips rather than canceling them completely. By July 2025, bookings had fully recovered, showing that demand for travel remains strong despite global challenges.

This resilience gives Etihad confidence to move forward. Instead of worrying about short-term shocks, the airline is focusing on steady growth and customer trust.

Why Self-Funding Is a Smart Strategy

Many airlines depend on raising outside money through stock sales or loans. Etihad’s choice to rely on its own resources has several advantages:

No Pressure from Shareholders
Public companies must meet the expectations of investors and report earnings every three months. By staying private, Etihad avoids this pressure and can think long-term.

Lower Costs
Preparing and running an IPO is expensive. There are legal, marketing, and financial fees. By avoiding an IPO for now, Etihad saves money and focuses directly on operations.

Flexibility
Markets can be unpredictable. If Etihad went public during a bad market phase, it might not raise as much money as hoped. Waiting allows the airline to choose the right time if ADQ decides to proceed.

Stronger Image
By showing it can grow with its own strength, Etihad builds confidence among travelers, partners, and governments. It sends a message: the airline is not dependent on outside help.

The Role of ADQ

ADQ, Abu Dhabi’s sovereign wealth fund, has a clear influence on Etihad’s strategy. Since taking control in 2022, ADQ shifted the company’s priorities:

No risky acquisitions: In the past, Etihad invested in airlines in Europe and Asia, many of which struggled financially. This strategy caused heavy losses. ADQ ended this approach.

Focus on Abu Dhabi: The new goal is to turn Abu Dhabi into a stronger international travel hub, connecting East and West.

Stable growth: By focusing on passenger demand, fleet modernization, and service quality, ADQ aims to make Etihad one of the most reliable global airlines.

Future Plans for Expansion

• Looking ahead, Etihad has a 10-year, $20 billion plan. This will cover:
• Fleet modernization: Bringing in newer, more fuel-efficient planes.
• Better services: Expanding routes, improving lounges, and upgrading in-flight experiences.
• Sustainability goals: Investing in greener technology and reducing carbon emissions.
• Training and jobs: Hiring and training more pilots, cabin crew, and ground staff to meet rising demand.

All of this will be funded internally. Etihad believes it can generate enough profits from passenger growth, cargo services, and careful financial planning.

Global Airline Competition

Etihad is part of the highly competitive Gulf airline market, where Emirates (Dubai) and Qatar Airways (Doha) are also strong players. Each airline competes for passengers traveling between Europe, Asia, and Africa.

To stand out, Etihad focuses on quality and efficiency rather than being the biggest. Its smaller size compared to Emirates allows it to adapt more quickly and focus on customer service.

By being financially careful, Etihad aims to avoid past mistakes and keep a strong reputation in the industry.

• What This Means for Travelers and the Economy
• For travelers, Etihad’s growth means:
• More routes and flight options.
• Newer, more comfortable aircraft.
• Competitive ticket prices due to efficient operations.
• For Abu Dhabi and the UAE’s economy, Etihad’s expansion helps:
• Boost tourism.
• Create jobs in aviation, hospitality, and trade.

Initial Public Offering (IPO)