Etihad Airways (EY, Abu Dhabi International) - owned by the Abu Dhabi sovereign wealth fund ADQ - will wait until 2025 before making its stock market debut, aiming to showcase strong 2024 financial results to investors before proceeding with an IPO, two unnamed sources have told Reuters.
The airline was not immediately available for comment. A spokesperson told Reuters the airline "does not comment on rumour or speculation".
ADQ initially pushed for Etihad to be listed this year, but geopolitical instability in the region reportedly impacted the timing. The sovereign wealth fund aims to raise up to USD1 billion from the planned listing, leveraging strong interest in Gulf-based state-owned entities and Etihad's recent financial improvements. It has reportedly already selected the banks acting as joint bookrunners for the IPO and lead independent advisers.
Etihad Airways' previous strategy of investing in struggling airlines like Air Berlin (1991), Alitalia, Darwin Airline, and Jet Airways to expand its network and compete with Gulf rivals resulted in financial losses and reputational damage when those airlines all collapsed.
The airline downsized at the end of 2020, but in July 2022 announced record-breaking results on the back of increased travel demand. In October 2022, ADQ took over the airline from the government of Abu Dhabi. It appointed turnaround specialist Antonoaldo Neves as CEO, under whose helm the airline is expanding again.
Its "Journey 2030" strategy aims to enhance Abu Dhabi's status as a key travel hub between Asia and Europe. Plans include growing its network to more than 125 destinations and doubling its fleet to 150 aircraft by 2030.
The airline recently reported a 48% rise in half-year after-tax profits and a 38% increase in passenger numbers to 8.7 million. Neves has emphasised improving transparency, governance, and the balance sheet in preparation for a potential IPO, should ADQ decide to move ahead with it.
