Etihad warns 2027 airfares could rise as jet fuel stays expensive

He said fuel accounts for about 35 to 40 per cent of airline operating costs, based on his rough estimate. He also said jet fuel is currently “about all in $150 a barrel of Brent”, referring to the oil benchmark plus the refining premium.

The issue, he said, is timing. Many airlines bought fuel in advance this year through hedging arrangements, but those positions are expected to be much lower from the second quarter of 2027.

If fuel prices do not fall, airlines may have less room to absorb the extra cost. Neves said fares may have to go up, even though airlines would rather keep prices low to support demand.

If you want background on today’s pricing pressure, our earlier explainer on Why UAE Airfares Are So Expensive Right Now — and When They Might Drop breaks down the fuel and demand picture.

What higher 2027 airfares could mean for UAE residents

For residents who fly home regularly, the warning is simple: start planning for the chance that tickets may cost more from Q2 2027.

That is especially relevant for workers who budget carefully for one or two major trips a year, and for employers that pay for staff travel. Neves also said corporate travel into and out of Abu Dhabi is performing better than a year earlier, which suggests business travel budgets may also face more pressure if fares rise.

He added that airlines do not have the same pricing flexibility everywhere. In markets where passengers have lower purchasing power, carriers may not be able to pass on as much of the cost increase.

For travel still to come in 2026, Etihad said its plans for the busy November and December period are solid. If you are travelling during peak dates, it is worth also reading UAE National Day 2026: Airfares Could Double for the December Long Weekend.

Etihad says demand is still strong despite fuel pressure

Higher fuel costs are not stopping Etihad’s current expansion plans.

Neves said the airline is running about 15 per cent more seats than last year, with demand also 15 per cent higher. He put Etihad’s load factor at about 85 to 87 per cent during the week of the interview, compared with a typical 78 to 82 per cent among network carriers.

He also said Etihad now serves more than 120 destinations and is carrying between 25 million and 27 million passengers a year. The airline expects that figure to reach 30 million next year.

For the first quarter of 2027, Neves said he is confident growth will be at least 10 per cent year on year.

He was also asked whether fuel prices would change the geographies Etihad targets next year. His answer was clear: “As of now, no.” He said the network works as a system, with stronger markets helping offset weaker ones.

For readers tracking aviation careers, our coverage of Etihad Airways Hiring 2,000 a Year as It Targets 37 Million Passengers gives more context, and you can browse current aviation openings on JobXDubai Jobs.

What passengers should watch next

Etihad’s next phase is about both growth and consistency.

Neves said the airline will start retrofitting aircraft next year, with a goal of bringing 95 per cent of the fleet into a new configuration by the end of 2028. He also pointed to investment in premium services, extra First Class capacity, home luggage collection and cabin crew iPads that should help staff respond to passenger preferences and solve service issues during the flight.

For most residents, though, the immediate issue is price rather than product.

Here are the practical signals to watch:

• Q2 2027, when hedging cover is expected to be lower across the industry.
• Jet fuel prices, because Neves said they are the main pressure point for airlines.
• Peak travel periods, when strong demand can make higher costs harder for airlines to absorb.
• Corporate travel budgets, especially for Abu Dhabi based firms with frequent flying needs.

Key takeaway

Etihad is still growing, but its CEO says 2027 airfares could come under pressure if jet fuel prices stay high and hedging protection fades from Q2. For UAE residents, that means it may be wise to leave more room in next year’s travel budget, even if airlines keep adding seats and routes.

FAQ

Why could Etihad airfares rise in 2027?

According to Gulf News, Etihad’s CEO said rising jet fuel costs are the biggest challenge for airlines next year. He said many airlines have fuel hedges in place this year, but those positions are expected to be much lower from Q2 2027.

When could airfare pressure start in 2027?

Neves said the pressure could start from the second quarter of 2027. That is when the protection from advance fuel purchases is expected to reduce for many airlines.

Will Etihad cut routes because of fuel prices?

Based on what Neves told Gulf News, not for now. He said fuel prices do not currently change the geographies Etihad plans to target next year.

Is demand for Etihad flights still strong?

Yes. Neves said Etihad has about 15 per cent more seats than last year and demand is also 15 per cent higher, with planes running at about 85 to 87 per cent load factor in the week of the interview.

What changes is Etihad making apart from adding flights?

The airline plans to begin retrofitting aircraft next year and wants 95 per cent of its fleet in a new configuration by the end of 2028. It is also equipping cabin crew with iPads and expanding services such as home luggage collection.

Further reading

• Why UAE Airfares Are So Expensive Right Now — and When They Might Drop
• UAE National Day 2026: Airfares Could Double for the December Long Weekend
• Etihad Airways Hiring 2,000 a Year as It Targets 37 Million Passengers
• Emirates Now Flying to 100+ Destinations: What Passengers Need to Know