IPO not the final destination, says Etihad CEO; strong cash flow funds $10 billion expansion

Abu Dhabi: Etihad Airways, fresh from a record-breaking financial performance, is no longer viewing a public listing as a strategic necessity, according to Antonoaldo Neves, CEO of Etihad Aviation Group. Speaking at Abu Dhabi Finance Week 2025, Neves confirmed the airline's readiness for an IPO but said a capital injection is not needed to fund its aggressive expansion. The airline's strong internal cash generation has fundamentally shifted the nature of the IPO discussion, turning it into a decision of optionality rather than urgency.

“IPO is not the end game. Is not the final destination for us,” Neves stated, signalling a clear divergence from the typical trajectory of a restructured state-owned carrier. “Reality is now that we can finance our growth from our own cash flow generation.”

Neves detailed the scale of the ongoing transformation and the capital required to sustain it. Over the past three years, the airline has effectively doubled its size.

“We're on a journey, right? We have just announced the 31 new destinations. We're going to be investing about $10 billion (Dh37 billion) in the next five years, and cash flow generation is coming very strong,” he confirmed.

The CEO framed the decision to list as driven by shareholders' financial objectives, not the airline's operating needs. Citing global trends in which profitable carriers are increasingly executing share buybacks, Neves suggested that shareholders must weigh the true value of an IPO.

“I think the shareholder is wondering why IPO, with airlines generating cash and self funding investment over the past five years, so in the end, is going to be a shareholder decision,” he said.

The airline recently reported a nine-month profit of Dh1.7 billion ($463 million), the strongest in its history, on the back of an 18% rise in revenue to Dh21.7 billion. Operational efficiency also played a key role, contributing to a 27% increase in EBITDA to Dh4.3 billion and a 40% boost in cash flow from operations.

Etihad’s operating fleet has grown to 115 aircraft, including new Airbus A321LRs, Boeing 787s, and A350s, supporting a network of over 100 destinations and close to 300 daily flights. Passenger numbers surged by 18% to 16.1 million, with an 88% load factor.

The next cycle of expansion is already underway and tied directly to the economic growth of the UAE capital. Etihad has confirmed an order for 32 new Airbus aircraft, including A330neo, A350-1000s, and A350 Freighters, with deliveries beginning in 2027.

The airline has also revised its fleet target upwards to 200 jets by 2030 and expects to carry 37 million passengers by the end of the decade.

Neves stressed the airline’s role in the Emirate’s economy. “Airlines are very important for cities, for economic development,” he stated. “We're growing a lot and hiring more than 2500 people per year, but you can only do that if you make money. Abu Dhabi is booming. Population is growing, so we need to be there with capital to be allocated at the right time in the right place.”

While the final call rests with the shareholder, Neves confirmed that the technical groundwork for a listing has been completed. “Etihad, from a governance perspective, from a balance sheet perspective, from a storytelling perspective, a structured perspective, is ready to go, but it's up for the shareholder to think if there is a need from their part to go public.”