ABU DHABI- Etihad Airways (EY) is reportedly set to announce a $1 billion initial public offering (IPO) this week.
If confirmed, it would be the first major airline IPO in the Gulf region in nearly two decades. The carrier plans to sell a 20% stake in the company through new shares to support its expansion plans.
Photo: Clément AlloingEtihad Airways $1 Billion IPO
Etihad Airways (EY), owned by Abu Dhabi’s $225 billion sovereign wealth fund ADQ, is expected to list 2.7 billion primary shares.
The proceeds will go directly to the airline to finance its “Journey 2030” expansion strategy rather than benefiting its parent company.
The IPO follows Etihad’s strong financial performance and aligns with Abu Dhabi’s broader economic diversification efforts.
The announcement comes amid global aviation challenges, including supply chain disruptions, rising costs, and operational hurdles faced by airlines in Europe and other regions.
Etihad’s strategic move signals confidence in the Gulf’s aviation market and investor interest in the sector.
Etihad Airways reported a net profit of $476 million in 2023, more than tripling its previous year’s earnings. The airline attributed this growth to increased passenger and cargo revenues, as well as enhanced operational efficiency.
In 2024, Etihad continued its upward trajectory, posting a profit of Dh1.7 billion after tax. The carrier transported 18.5 million passengers in 2023, marking a 32% increase from the previous year.
Revenue surged to Dh20.8 billion from passenger operations and Dh4.2 billion from cargo services.
To accommodate its growth, Etihad expanded its network, launching over 20 new destinations, including Boston (BOS), Jaipur (JAI), Bali (DPS), and Nairobi (NBO).
The airline also increased flight frequencies on 25 routes and added 10 more destinations in 2024.
Photo: Clément AlloingFleet Expansion
Etihad is strengthening its fleet to support rising demand and enhance efficiency. The airline is acquiring 12 new aircraft, including six Airbus A320 NEOs, and reintroducing its fifth Airbus A380.
The airline now operates one of the youngest and most fuel-efficient fleets in the region, aligning with its environmental, social, and governance (ESG) commitments to reduce carbon emissions.
Abu Dhabi’s strategic investments in aviation infrastructure also contribute to Etihad’s expansion.
In 2023, the emirate launched a multibillion-dollar new terminal at Zayed International Airport (AUH), tripling its capacity to 45 million passengers annually.
Photo: avgeekwithlens/ Harsh TekriwalEtihad Airways’ IPO
If confirmed, Etihad Airways’ IPO would be the second major listing in the UAE this year, following technology firm Alpha Data’s offering.
The IPO would also mark the first airline listing in the region since Air Arabia’s (G9) debut on the Dubai Financial Market in 2007.
Etihad has undergone significant restructuring and leadership changes in recent years, positioning itself for long-term growth.
Under CEO Antonoaldo Neves, the airline has shifted towards a more sustainable and profitable business model.
The IPO will enable further investment in fleet expansion, route development, and service enhancements.
While Etihad has not officially confirmed the IPO, industry experts see it as a strategic step in Abu Dhabi’s push to solidify its status as a global aviation hub.
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