Aircraft deals, 17 destination launches, robust Q1, but what happened to Etihad’s IPO deal?

Dubai: Etihad Airways is flying high, announcing a robust first quarter for 2025 with record-breaking financial performance and an impressive 16 destination launches this year, and another one to Charlotte, United States, next year.

But whatever happened to UAE’s national airline’s plans for an initial public offering (IPO)?  It almost seems as though the long-discussed IPO appears to be taking a back seat as the airline enjoys a period of self-sufficient growth and profitability.

Analysts have maintained since 2023 that the airline is a strong candidate for an IPO. Etihad returned to profitability in 2023 and reported record profits in 2024 – a reversal from years of losses- a key factor in generating investor interest.

Chief Analyst at StrategicAero Research, Saj Ahmad, told Gulf News, “There is no question Etihad’s turnaround is now delivering good rewards on the back of this robust Q1 profitability, despite an earlier Ramadan, which often can be quieter.” 

He said, “Their increased passenger load factor also suggests the lure of their revamped cabin products and growing network is a key asset in attracting more passengers. This is why they updated their orders for more 787s and 777Xs last week.” 

The airline posted a profit after tax reached Dh685 million ($187 million), marking a 30 per cent increase year-on-year. Total revenue saw a 15 per cent rise compared to Q1 2024, supported by both passenger and cargo business.

The airline carried 5 million passengers in Q1 2025 – a 16 per cent year-on-year increase – and maintained strong momentum into Q2. The airline carried nearly 20 million passengers over the last 12 months.

Etihad’s results were coupled with significant aircraft deals with Boeing. Following US President Donald Trump’s visit to the UAE, the carrier announced expanding its fleet, confirming an order for 28 wide-body Boeing aircraft. 

The agreement includes a mix of Boeing 787 and 777X aircraft powered by GE engines and supported by a services package. These aircraft are expected to join the fleet from 2028 onwards. The airline aims to double in size by 2030.

As for the IPO – this prospect has been discussed for several years, but nothing has happened. While the airline has not officially announced a date for the public listing, news agency Reuters reported in March that it will push back its planned $1 billion IPO after Eid Al Fitr. 

During the Arabian Travel Market (ATM) last month, airline CEO Antonolado Neves said the IPO decision lies with the investors. Neves said Etihad is progressing with a progressive growth strategy despite market volatility from US tariffs and fluctuating oil prices. Last year, the airline revealed a $7 billion investment plan over the next five years to double its fleet size by 2030.

“This year, we expect a growth between 15 to 20 per cent, and very soon, we are going to have 100 planes in our fleet, with 20 to 22 aircraft to be added this year,” Neves had said. “Over the next few years, we will add 20 planes per year to reach our planned fleet capacity of 170 aircraft and 30 to 33 million passengers by 2030.”

The airline CEO even told Bloomberg that the company is IPO ready but does not need the cash from the IPO 'right now'. 

However, aviation analysts like Ahmad say the listing may still happen. “It may still transpire, but we won’t see a huge chunk of the airline up for grabs. Abu Dhabi will still want to retain a majority stake in the carrier and be less beholden to possible shareholder moves that aren’t in line with their current corporate strategy,” said Ahmad.  

He added, “At this point, Etihad is a well-oiled machine, back in the black, expanding, buying new jets and enjoying a resurgence – they aren’t short of money, so what does an IPO give them that they don’t already have,” asked Ahmad.

“That’s the key question, and that is why I don’t think the airline will rush to do an IPO – just because flynas has gone down that route doesn’t mean others will follow,” he added.