Etihad Airways Delays IPO to 2025 to Showcase 2024 Results

Etihad Airways, owned by the Abu Dhabi sovereign wealth fund ADQ, has postponed its planned stock market debut to 2025, aiming to present robust 2024 financial results before proceeding with an Initial Public Offering (IPO). Sources close to the matter informed Reuters about the delay, citing a strategic decision to capitalize on improved financial performance, reported ch-aviation.com.

The airline was unavailable for comment, and a spokesperson noted that Etihad does not address rumors or speculation.

Originally, ADQ aimed for an IPO within this year, but regional geopolitical instability has reportedly influenced the decision to push back the listing. The sovereign wealth fund plans to raise up to USD 1 billion from the IPO, capitalizing on strong investor interest in Gulf-based state-owned entities and the airline’s recent financial recovery. The selection of banks as joint bookrunners and lead independent advisers for the IPO has reportedly already been completed.

Etihad Airways’ earlier strategy of investing in struggling airlines such as Air Berlin, Alitalia, Darwin Airline, and Jet Airways aimed to expand its network and compete with Gulf rivals. However, these investments led to financial losses and reputational damage when the airlines eventually collapsed.

After downsizing in late 2020, Etihad Airways reported record-breaking financial results in July 2022, driven by a surge in travel demand. In October 2022, ADQ assumed control of the airline from the Abu Dhabi government and appointed turnaround specialist Antonoaldo Neves as CEO. Under Neves’ leadership, the airline is now on an expansion trajectory.

Etihad’s “Journey 2030” strategy aims to bolster Abu Dhabi’s position as a central travel hub between Asia and Europe. The strategy includes expanding the airline’s network to over 125 destinations and doubling its fleet to 150 aircraft by 2030.

Recently, Etihad reported a significant 48% increase in half-year after-tax profits and a 38% rise in passenger numbers, reaching 8.7 million. Neves has focused on enhancing transparency, governance, and financial stability in preparation for a potential IPO, contingent on ADQ’s final decision to proceed.

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com