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Etihad Airways potential IPO unlikely this year

By Pramod Kumar
Etihad Airways reported a 48% year-on-year rise in net profit to $232m in the first half of 2024 Etihad Airways
Etihad Airways reported a 48% year-on-year rise in net profit to $232m in the first half of 2024

The possible initial public offering (IPO) of Etihad Airways is unlikely to happen this year, a media report has said.

Regional geopolitical instability and a plan to show investors a strong financial performance in 2024 are key factors delaying the IPO launch, Reuters reported, citing informed sources.

An Etihad spokesperson said it does not comment on rumour or speculation, the report said.

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Etihad, owned by the UAE sovereign wealth fund ADQ, had considered listing this year, Bloomberg reported in March.

Airline IPOs are very rare and there are probably more examples of such projects being halted before getting to market than there are success stories, John Grant, a partner at UK consultancy Midas Aviation, wrote in a column for AGBI. There are certainly no “best case” examples in recent years. 

The Abu Dhabi-headquartered airline said net profit rose 48 percent year on year to AED851 million ($232 million) in the first half of 2024, driven by a rise in passenger numbers and new destinations.

Total revenue increased by 21 percent year on year to AED11.7 billion, primarily fuelled by a 24 percent rise in annual passenger revenue to AED9.7 billion.

The airline will add six A321neos to its fleet this year, equipped with advanced CFM Leap 1A engines, Antonoaldo Neves, CEO of Etihad Aviation Group, said.

The ownership of Etihad Airways was transferred to ADQ from Abu Dhabi’s Supreme Council for Financial and Economic Affairs in 2022 to boost the emirate’s status as a transport hub.

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