Abu Dhabi’s Etihad Airways plans to make its stock market debut no earlier than 2025, two people familiar with the matter said, in what could be the first IPO from a major Gulf airline as the United Arab Emirates capital steps up efforts to become a global travel hub.
Etihad, owned by sovereign wealth fund ADQ, had considered going public this year, the people said.
However, it wants to present investors with 2024 financial results that will show a strong performance, one of the people said. Geopolitical instability in the region has also influenced the timetable, the second person said.
ADQ declined to comment. An Etihad spokesman said it “does not comment on rumours or speculation.”
Etihad, which began operations in 2003, spent billions of dollars buying minority stakes in other airlines to create a larger network through its hub in Abu Dhabi and better compete with Gulf peers Emirates and Qatar Airways. But that strategy backfired when many of those airlines ran into financial trouble.
After a management restructuring and years of downsizing operations, Etihad has expanded under new CEO Antonoaldo Neves.
As part of its Travel 2030 strategy, it plans to strengthen Abu Dhabi’s role as a travel hub connecting Asia and Europe.
Goals include expanding destinations to more than 125 airports by 2030 from more than 70 currently, and increasing its fleet to more than 160 aircraft from approximately 90 currently.
Abu Dhabi’s Zayed International Airport opened a new multi-million-dollar terminal last year that tripled annual capacity to 45 million passengers.
“Our mandate is clear: to deliver outstanding customer service and sustainable profitability as the foundation for Etihad’s contribution to Abu Dhabi’s aspirations,” Neves said last November.
Last month, the airline reported a 48% rise in its half-year after-tax profit, with passenger numbers up 38% to 8.7 million. This followed net profits for the full years of 2022 and 2023.
Neves told Reuters in March that Etihad was improving transparency, governance and its balance sheet to be ready for a IPO If ADQ decides to include it on its list.
Etihad is also facing delays in receiving new aircraft from manufacturers Airbus and Boeing, forcing some airlines to scale back their growth plans.
This comes amid a boom in international travel since the pandemic, which Gulf governments are using to implement reforms aimed at diversifying their economies away from fossil fuels.
The measures include the privatisation of state assets, including airlines, and a possible listing of Etihad would add to a wave of regional IPOs in recent years.
The head of biggest rival Emirates said that in 2021 the Dubai government was considering a IPO of the airline, and Saudi Arabia’s Flynas is considering going public as soon as this year, Bloomberg reported. Flynas was not immediately available for comment.
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