ABU DHABI- Etihad Airways (EY) has postponed its anticipated $1 billion initial public offering (IPO) until at least next month, following the Eid al Fitr holiday, according to two sources familiar with the matter.
The Abu Dhabi-based carrier never officially announced an IPO date, though sources previously informed Reuters that the airline planned to make an announcement last week after reporting its profit had tripled. This offering would mark the first new listing of a major Gulf airline in nearly two decades.
Photo: Clément AlloingEtihad Delays IPO Launch
The reason for the delay remains unclear. Both sources requested anonymity as they lacked authorization to discuss the matter publicly.
Etihad Airways, owned by Abu Dhabi’s $225 billion wealth fund ADQ, declined to comment on the postponement. ADQ similarly offered no comment when contacted.
The Gulf offering represents a potential bright spot for airline investors amid industry-wide challenges including delivery delays, labor disruptions, rising costs, and engine problems.
Etihad, which began operations in 2003, intended to issue shares for approximately 20% of its business to finance expansion plans, according to sources who spoke with Reuters.
The airline reported last month that its net profit more than tripled to $476 million in the previous year. Etihad has undergone extensive restructuring and leadership changes but has expanded under the direction of new CEO Antonoaldo Neves.
Photo: Clément AlloingHighest Ever Profit
Etihad Airways announced its 2024 financial results, posting an AED 1.7 billion (US$476 million) profit after tax, driven by AED 20.8 billion (US$5.7 billion) in passenger revenue and AED 4.2 billion (US$1.1 billion) in cargo revenue, alongside operational efficiency improvements.
The airline transported 18.5 million passengers last year, representing a 32 percent increase from 2023, demonstrating strong demand across its network. This growth was supported by a 28 percent year-on-year increase in Available Seat Kilometres (ASK) and an improved passenger load factor of 87 percent, up from 86 percent in 2023.
Total revenue increased by 25 percent year-on-year to AED 25.3 billion (US$6.9 billion), with passenger revenue growing by AED 4.2 billion (US$1.1 billion) or 25 percent compared to 2023. Cargo revenue rose by 24 percent, fueled by increased capacity and a 12 percent increase in cargo leg tonnes carried, alongside improved yields in the second half of the year.
Etihad expanded operations to over 1,700 weekly flights in 2024 and increased frequencies on 25 routes over the past two years. The airline launched more than 20 new destinations, including Boston, Jaipur, Bali, and Nairobi, alongside seasonal destinations like Antalya, Nice, and Santorini, with over 10 new cities set to begin operations in 2025.
The carrier expanded its fleet with 12 additional aircraft, including six new A320 NEOs and the return to service of its fifth A380. Etihad now operates the youngest and most fuel-efficient fleet in the region, supporting its ESG strategy to reduce carbon emissions while enhancing service offerings.
Etihad invested in customer experience improvements, resulting in a significant Net Promoter Score (NPS) increase that reflects higher operational and service satisfaction. The airline approved a AED 3 billion retrofit program—its largest ever—expected to further enhance cabin comfort and inflight experience. Etihad also introduced a dedicated premium call center for personalized service, implemented over 200 enhancements to its website and app, and grew its Etihad Guest loyalty program to 10 million members.
The airline received multiple industry awards from organizations including World Travel Awards and Business Traveller Awards for Best Cabin Crew, Best Customer Experience, Best Economy Class, and Best First Class Lounge. Etihad was also named Environmental Airline of the Year by AirlineRatings.com in 2024 for the third consecutive year.
Etihad’s workforce expanded to over 11,000 employees, with more than 2,000 new hires and over 1,500 promotions. The airline advanced its UAE National Talent initiatives, with over 70 Emirati cadet pilots graduating and more than 3,000 applications received for the latest cadet program. UAE Nationals now constitute 20 percent of Etihad’s workforce, supporting the UAE talent strategy and developing future aviation professionals.
Photo: Sanad AviationExecutive Remarks
His Excellency Mohammed Ali Al Shorafa, Chairman of Etihad Airways, expressed gratitude to customers and staff for enabling the airline to realize its ambitions while consistently delivering reliable, best-in-class service. He credited the team’s unwavering commitment for strengthening the airline, boosting efficiency and improving customer experience.
“As we expand our network and enhance our offerings, we remain focused on connecting more people with Abu Dhabi and supporting the Emirate’s tourism ambitions, fulfilling our vision to be the airline that everyone wants to fly,” Al Shorafa stated.
Antonoaldo Neves, Chief Executive Officer of Etihad Airways, attributed the results to staff dedication and successful strategy implementation. He highlighted improvements in customer satisfaction across all cabin classes and touchpoints while maintaining profitable growth, disciplined efficiency, and safety commitment.
“Looking ahead, I am confident we will continue to be a financially strong airline delivering extraordinary customer experiences, fulfilling our shareholder’s mandate, and contributing to the long-term prosperity and success of the UAE,” Neves said.
Throughout 2024, Etihad strengthened profitability and expanded margins through fleet and network optimization, improved efficiency, and productivity focus. The airline expanded its network through 126 interline, codeshare, and strategic partnerships, including a landmark arrangement with China Eastern—the first between a Middle Eastern and Chinese airline—and a strategic partnership with SF Airlines to enhance logistics capacity and network reach.
Etihad increased operational efficiency with Cost per Available Seat Kilometre (CASK) and CASK ex-fuel decreasing by 3 percent and 4 percent respectively. Central function costs grew at a rate significantly lower than capacity expansion.
Strong revenue performance and improving unit costs drove EBITDA to AED 4.7 billion (US$1.3 billion), representing a 32 percent year-on-year increase.
Profit after tax for 2024 more than tripled year-on-year, driven by passenger business momentum, cargo operations recovery, and significantly reduced net finance costs—down by almost AED 1 billion or 80 percent year-on-year—reflecting continuous balance sheet deleveraging supported by strong cash generation.
Recognizing Etihad’s financial improvements, credit rating agency Fitch upgraded the airline’s rating to A+ in July 2024, citing its materially stronger standalone credit profile.
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