Etihad CEO discusses potential public listing while focusing on global expansion strategy
Etihad Airways‘ much-discussed initial public offering (IPO) represents “a natural progression” rather than an ultimate objective for the UAE national carrier, according to CEO Antonoaldo Neves in an exclusive interview with JobXDubai.
Neves confirmed that while the airline is prepared for public listing from both governance and financial perspectives, “no decision has been made on IPO, as it is the shareholder’s decision.” Established in 2003, Etihad is owned by sovereign wealth fund ADQ, which has yet to comment officially on the matter.
Record-Breaking Performance
Speculation about Etihad’s stock market debut has intensified following exceptional performance in 2024 and substantial passenger growth over recent years.
The airline reported an impressive Dh1.7 billion profit after tax last year, driven by:
- Dh20.8 billion in passenger revenue
- Dh4.2 billion in cargo revenue
- Significant operational efficiency improvements
In 2024, the UAE national airline transported more than 18.5 million passengers, representing a 32% increase from 2023 and an 80% rise compared to 2022 figures.
Strategic Priorities
Despite having corporate governance structures and financial results ready for an IPO, Neves emphasised that Etihad’s current priority lies in expanding its global network rather than public listing.
“The IPO is not a necessity but an option – a means to expand in a very capital-intensive business,” Neves explained during a flight to Addis Ababa, where Etihad announced its latest destination.
The CEO expressed satisfaction regarding ongoing IPO discussions, suggesting they indicate positive performance. “Because if we’re doing badly, there would never be speculation on any IPO, right?” he noted.
“We have expanded our margins and improved profitability. But there’s still a lot of things that we need to do and, thankfully, we have the right support from our shareholders. We have a great board and we have great people working for the company,” he continued.
A Natural Development
Neves, who previously served as CEO and board member of TAP, Portugal’s national airline, described offering shares to institutional and individual investors as a logical progression for Etihad as it intensifies efforts to become a global travel hub.
“It’s natural, right?” he added, pointing out that ADQ itself is a listed company.
The CEO reiterated that running an airline requires substantial capital investment, necessitating flexibility and access to various financial instruments, including public offerings.
He confirmed that from perspectives of transparent corporate governance and financial performance, Etihad meets all criteria for an IPO. “The airline is doing great, but the decision to do it remains with the shareholders. If we’re going to do it or not, only time will tell,” he added.
Network Expansion
Meanwhile, Etihad continues to focus on extending its global reach. Addis Ababa represents its 15th new destination for 2025, with daily nonstop flights from Abu Dhabi to the Ethiopian capital scheduled to commence on October 1. This expansion follows a Joint Venture agreement with Ethiopian Airlines.
Neves highlighted Etihad’s commitment to developing international partnerships: “We earlier announced a partnership with China Eastern to improve connectivity to China. Partnerships are crucial for Etihad because they enable us to offer customers more travel options to various destinations worldwide.”
The airline recently announced a third daily flight to Moscow Sheremetyevo Airport (SVO) and a new service to Sochi, Russia’s premier Black Sea resort destination, beginning May 29.
Additionally, Etihad revealed plans for a new direct route to Indonesia’s popular island destination of Medan, commencing October 2.
Key Takeaway
While Etihad Airways has achieved the financial strength and governance standards necessary for a potential IPO, the company’s primary focus remains on strategic global expansion through new routes and international partnerships rather than public listing, which ultimately remains a shareholder decision.
JobXDubai 
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