DUBAI/LONDON, Sept 11 (Askume) – Abu Dhabi’s Etihad Airways plans to list itself on the stock exchange by 2025, two people familiar with the matter said, in what could be the first time a major Gulf airline launches a public float in the United Arab Emirates’ capital.
Etihad, owned by sovereign wealth fund ADQ, had considered listing this year, sources said.
However, one of the people said it expects to present financial results to investors in 2024, showing strong results. Geopolitical instability in the region also affected the timing, the second person said.
ADQ declined to comment. An Etihad spokesman said it “does not comment on rumours or speculation.”
Etihad Airways, which began operations in 2003, has spent billions to build a large network through its Abu Dhabi hub and bought minority stakes in other airlines to better compete with Gulf counterparts Emirates and Qatar Airways. But the strategy failed as several airlines ran into financial difficulties.
Following management changes and several years of operational cutbacks, Etihad Airways continues to expand under new chief executive Antonio Neves.
Under its Journey 2030 strategy, it plans to strengthen Abu Dhabi’s role as a tourism hub linking Asia and Europe.
The goals include increasing the number of airports from the current 70 to over 125 by 2030 and the number of aircraft from the current 90 to over 160 by 2030.
Abu Dhabi Zayed International Airport’s new multibillion-dollar terminal opened last year, tripling annual passenger traffic to 45 million.
“Our mission is clear: to deliver exceptional customer service and sustainable profitability, which are fundamental to Etihad’s contribution to Abu Dhabi’s aspirations,” Neves said in November.
The airline reported a 48% rise in after-tax profit last month , with passenger numbers rising 38% to 8.7 million. This will be followed by full-year net profits in 2022 and 2023.
Neves told Askume in March that Etihad was improving transparency, governance and its balance sheet to prepare for an initial public offering if ADQ decides to float.
Etihad Airways has also faced delays in purchasing new planes from aircraft manufacturers Airbus (AIR.PA) and Boeing (BA.N) , forcing some airlines to slow growth plans.
The development comes amid a surge in international travel since the pandemic and as Gulf governments push for reforms aimed at diversifying their economies away from fossil fuels.
The measures include the privatisation of government assets including airlines and the possible listing of Etihad Airways, adding to the number of regional initial public offerings in recent years.
The chairman of larger rival Emirates Airline said the Dubai government is considering an airline IPO in 2021, and Saudi Arabia’s Flynas also hopes to go public this year, according to Bloomberg. Flynas declined to comment.
(1 USD = 3.6728 UAE Dirham)
