Abu Dhabi-based Etihad Airways is considering an Initial Public Offering (IPO) following a remarkable surge in revenue and passenger numbers in 2023. CEO Antonoaldo Neves has confirmed the airline's readiness for this move.

In the recent earnings report, the airline's revenue substantially increased in 2023, reaching $5.5 billion, up from $5 billion the previous year. This growth was supported by a 40% boost in passenger numbers, totaling 14 million passengers for the year.

Etihad Airways Ready for IPO: CEO

Neves expressed his preparedness for the potential IPO, emphasizing the importance of being ready whenever the shareholders decide it is the right time. "It's our obligation to be ready to IPO the company whenever the shareholder believes it is the right time... and this is good, even if you don't do it," Neves told CNBC.

Etihad Airways, owned by Abu Dhabi wealth fund ADQ, aims to tap capital markets to fund future growth and expansion plans. If successful, it would become the first major Gulf carrier to be publicly traded.

Despite the challenges posed by the COVID-19 pandemic, Etihad Airways achieved an operating profit of $394 million in 2023. The airline expanded its network by launching 15 new destinations and adding 14 aircraft to its fleet, contributing to its impressive performance.

In addition to its financial success, Etihad Airways has been focusing on enhancing its customer experience. Neves, who joined the airline in 2022, has implemented measures to limit losses and improve service quality since Etihad's ownership was transferred to ADQ during the pandemic.

While the prospect of an IPO marks a significant milestone for Etihad Airways and regional capital markets, it also presents challenges. Going public would subject the airline to stricter financial reporting requirements and additional compliance costs.

"We're working very hard, so that our governance is top notch... so that profitability is at the level that the shareholder can decide to IPO or not to IPO," Neves said.

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Strong Financial Performance

Etihad's strong financial performance in 2023 contrasts with its previous struggles. In 2022, the airline reported a profit of just $25 million, highlighting the substantial improvement achieved within a year.

The announcement of Etihad Airways' potential IPO comes amidst ongoing concerns about the aviation industry's recovery from the pandemic. The airline industry faces uncertainties due to geopolitical tensions and rising costs.

Despite these challenges, Neves remains optimistic about Etihad Airways' prospects. He emphasized the company's commitment to further strengthening its business, pursuing growth strategies, and expanding margins.

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