Abu Dhabi’s Etihad Airways plans IPO no earlier than 2025, report says

Abu Dhabi’s ADQ is reportedly considering listing Etihad Airways on the local exchange no sooner than 2025 in what is potentially the first privatisation of a major legacy airline in the GCC region.

Sources familiar with the matter told Reuters that Etihad ADQ, the smallest of Abu Dhabi wealth funds and owner of Etihad, had considered listing the UAE’s national carrier this year.

However, the airline wants to present investors with 2024 financial results that will show a strong performance, as geopolitical tensions in the region have also weighed on the timing.

ADQ is reportedly working with advisers, including Citigroup, HSBC Holdings and First Abu Dhabi Bank, on the potential initial public offering (IPO), while Rothschild & Co. is acting as an independent financial adviser.

Antonoaldo Neves, the CEO of Etihad Airways, told reporters in March that the carrier is working to be ready for an IPO whenever the shareholder decides the time is right.

“As the management, we have the obligation, and whenever the proper time to do an IPO is, we are going to be ready,” Neves said, adding that the decision was for ADQ.

Founded in 2003, Etihad spent billions of dollars buying minority stakes in other carriers to create a larger network through its Abu Dhabi hub, but that strategy unravelled as many of those airlines ran into financial trouble.

Etihad Airways spreads its wings

Meanwhile, Etihad, which has undergone a massive restructuring over the past seven years, and plans to bolster Abu Dhabi’s role as a travel hub under its “Journey 2030” strategy.

The Abu Dhabi-based carrier aims to more than double its passenger capacity to 33 million and its fleet to over 160 aircraft planes by 2030, a shift in its strategy as it focuses on sustainable growth and enhanced customer experiences. The plans include expanding destinations to more than 125 airports by 2030 from over 70 today.

Etihad agreed to form a joint venture with China Eastern in June to develop and grow the routes between UAE and China.

The carrier reported a record net profit after tax of $232m (Dhs851m) in the six months ended June, up 48 per cent from $157m a year earlier. Its half-year revenues increased by 21 per cent to a record $3.2bn (Dhs11.7bn) from $2.6bn in H1 2023, helped by growth in network capacity and passenger numbers.

During this time, Etihad’s passenger revenue surged by 24 per cent year-on-year, underscoring strong demand for travel due to network expansion and increased flight frequencies. The airline carried 8.7 million passengers in the January-June period, a 38 per cent increase compared to the same period a year ago.

Read: Abu Dhabi’s Etihad posts record $232m half-year profit