Etihad Airways expects to exceed last year's annual profit in 2024 and is preparing for a potential listing - a first for a major Gulf airline - as it pursues an ambitious growth strategy between now and 2030, its chief executive has said.
"What’s really important is that Etihad is ready to IPO whenever it is a good time for an IPO ... we’re working very hard towards that goal," Antonoaldo Neves told The National.
"We have been improving our governance, we have been improving our ESG [environmental, social and corporate governance] practises, we have been improving our profitability, we have been strengthening our balance sheet.
“So, whenever is the right time for the shareholder – and that’s for the shareholder to decide – my obligation as the CEO and the obligation of the company is to be ready for that.”
The move to consider listing the airline is a “normal conversation” given that Etihad Airways' owner, Abu Dhabi holding company ADQ, has already floated companies within its portfolio of assets such as Pure Health, the UAE's largest healthcare group, and AD Ports Group, the operator of industrial cities and free zones in Abu Dhabi, Mr Neves said.
Asked about the timing of a possible deal, he said it was difficult to say because it had to be the “right window” of time.
“Every time you have uncertainty, it's not a good time to do it. It requires a lot of alignment of stars,” Mr Neves said.
“The shareholder has to be willing to do it, the company has to be ready, the market needs to be open and we have to have investors that are willing to invest. So, I'm not in a position today to tell you that all these conditions are aligned.”
Soaring high
Etihad Airways recorded its second consecutive annual profit in 2023, as it carried more passengers amid a continuing post-coronavirus travel boom.
Net profit jumped to Dh525 million ($143 million) last year, up from Dh92 million in 2022 (excluding a pandemic-related grant), Etihad Airways said on Wednesday.
Total revenue reached Dh20.3 billion, up 11 per cent annually, as passenger revenue grew while unit costs fell by 7 per cent.
We are saying 'No' to unprofitable markets … the network is getting stronger
Antonoaldo Neves
The airline carried 14 million passengers last year, 40 per cent more than in 2022. As a result, passenger revenue soared to Dh16.6 million, up from Dh12.6 million a year ago.
Passenger load factor, a measure of how well an airline is filling available seats, rose to 86 per cent last year, from 82 per cent in 2022.
“We did well. We can do better on the profit margin; we have space to further expand our margins,” Mr Neves said.
The airline increased aircraft use and improved its route network planning, he said.
“First and foremost we're investing a lot of time in efficiency and cutting costs.”
For example, the airline added 30 per cent more capacity last year, two thirds of which entailed the use of parked aircraft or flying jets in the fleet for more hours.
Etihad Airways also streamlined its network connectivity by adding more flight frequencies to cities in Europe, the GCC and South-East Asia.
“We are saying 'No' to unprofitable markets … the network is getting stronger,” Mr Neves said.
“Profitability is improving because we are strengthening the network. As I provide more opportunity for my customers, I can capture more customers.”
Hiring spree on strong tailwinds
While high fuel prices, inflationary pressures and supply chain constraints present challenges to airlines globally, Etihad expects its annual profit in 2024 to exceed last year's results by keeping costs in check, boosting revenue and expanding its profit margins.
“We're confident that this can be a good year for us … we want to exceed every year a little bit. So, it's not about getting a big bump one year and not another year, it's about consistency in margin expansion,” Mr Neves said.
Etihad's investments at the end of last year in launching new routes, training newly hired pilots and adding more aircraft to the fleet will pay off in 2024, particularly in the first half of the year.
“We believe that are going to have a good year this year,” he said.
To drive its expansion, Etihad plans to hire 1,500 to 2,000 pilots, cabin crew, mechanics and engineers this year, according to Mr Neves.
“In the second half of the year, we're going to be hiring to prepare for 2025,” he said.
The airline hired 2,300 new employees last year, primarily pilots and cabin crew.
It has not struggled to find talent, despite a global crunch in aviation workers, because of the career opportunities for co-pilots to become pilots, the “better value proposition” of living in Abu Dhabi and the move to cast a wide recruitment net around the world, he said.
'Very bullish' on 2024
Mr Neves said he was “very bullish” about 2024 because the Middle East's economic expansion is fuelling the aviation industry's growth, despite conflicts.
While some markets, such as China, are still lagging behind, others such as Europe, India, the US and the GCC are “booming for us”, he said.
Strong travel demand, coupled with constrained supply due to delayed aircraft deliveries, is helping to keep the business strong, he said.
For this reason, he expects ticket prices to remain elevated across the industry.
Asked about the impact of high jet fuel prices, Mr Neves said the airline had hedged for 50 per cent of its fuel consumption for this year and was in a “comfortable” position.
'Etihad is back'
Etihad Airways will take delivery of 10 Airbus A321LRs, or long-range narrow-body jets, from 2025, which it will use to boost its operations in South-East Asia and Europe, Mr Neves said.
“They're going to come with an amazing new interior, with lie-flat Business Class seats and high-speed internet,” he said. “Etihad is back.”
The planes are a combination of operating leases and owned aircraft from the airline's order book. Currently, it operates the older Airbus A320 and A321 models.
“We're going to renew the entire narrow-body fleet over the next five years,” Mr Neves said, pointing to the newer model's fuel efficiencies and longer reach.
“The narrow-body strategy for us is extremely important. We believe we can be more profitable if we have a network that is well done. I cannot afford not to have relevance in GCC and Indian markets. That's 2.4 billion people within four hours. So, that's a market that's really important for us,” he said.
To be competitive and “relevant” in those markets, Etihad wants to boost flight frequencies on single-aisle planes rather than operate fewer flights using larger aircraft.
“So, instead of sending two A380s to Riyadh, one in the morning and one in the evening, I prefer to send four narrow-bodies with much more convenient schedules for business people and tourists,” he said.
“To do the long-haul, we can also deploy this aircraft. With a lower capital investment, I can also go double-daily to Geneva.”
Super heroes
Iron Man
Reduced risk of dementia
Alcohol consumption could be an issue
Hulk
Cardiac disease, stroke and dementia from high heart rate
Spider-Man
Agility reduces risk of falls
Increased risk of obesity and mental health issues
Black Panther
Vegetarian diet reduces obesity
Unknown risks of potion drinking
Black Widow
Childhood traumas increase risk of mental illnesses
Thor
He's a god
Tank warfare
Lt Gen Erik Petersen, deputy chief of programs, US Army, has argued it took a “three decade holiday” on modernising tanks.
“There clearly remains a significant armoured heavy ground manoeuvre threat in this world and maintaining a world class armoured force is absolutely vital,” the general said in London last week.
“We are developing next generation capabilities to compete with and deter adversaries to prevent opportunism or miscalculation, and, if necessary, defeat any foe decisively.”
Results
2.30pm: Expo 2020 Dubai – Conditions (PA) Dh80,000 (Dirt) 1,600m; Winner: Barakka, Ray Dawson (jockey), Ahmad bin Harmash (trainer)
3.05pm: Now Or Never – Maiden (TB) Dh82,500 (Turf) 1,600m; Winner: One Idea, Andrea Atzeni, Doug Watson
3.40pm: This Is Our Time – Handicap (TB) Dh82,500 (D) 1,600m; Winner: Perfect Balance, Tadhg O’Shea, Bhupat Seemar
4.15pm: Visit Expo 2020 – Handicap (TB) Dh87,500 (T) 1,600m; Winner: Kaheall, Richard Mullen, Salem bin Ghadayer
4.50pm: The World In One Place – Handicap (TB) Dh95,000 (T) 1.900m; Winner: Castlebar, Adrie de Vries, Helal Al Alawi
5.25pm: Vision – Handicap (TB) Dh95,000 (D) 1,200m; Winner: Shanty Star, Richard Mullen, Rashed Bouresly
6pm: Al Wasl Plaza – Handicap (TB) Dh95,000 (T) 1,200m; Winner: Jadwal, Dane O’Neill, Doug Watson
Read more about the coronavirus
The biog
Name: Timothy Husband
Nationality: New Zealand
Education: Degree in zoology at The University of Sydney
Favourite book: Lemurs of Madagascar by Russell A Mittermeier
Favourite music: Billy Joel
Weekends and holidays: Talking about animals or visiting his farm in Australia
COMPANY PROFILE
Name: Lamsa
Founder: Badr Ward
Launched: 2014
Employees: 60
Based: Abu Dhabi
Sector: EdTech
Funding to date: $15 million
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SPEC%20SHEET
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Hurricanes 31-31 Lions
Wellington Hurricanes:
Tries: Gibbins, Laumape, Goosen, Fifita tries, Barrett
Conversions: Barrett (4)
Penalties: Barrett
British & Irish Lions:
Tries: Seymour (2), North
Conversions: Biggar (2)
Penalties: Biggar (4)
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
STAY%2C%20DAUGHTER
%3Cp%3E%3Cstrong%3EAuthor%3A%20%3C%2Fstrong%3EYasmin%20Azad%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPublisher%3A%20%3C%2Fstrong%3ESwift%20Press%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EAvailable%3A%20%3C%2Fstrong%3ENow%3C%2Fp%3E%0A
Ipaf in numbers
Established: 2008
Prize money: $50,000 (Dh183,650) for winners and $10,000 for those on the shortlist.
Winning novels: 13
Shortlisted novels: 66
Longlisted novels: 111
Total number of novels submitted: 1,780
Novels translated internationally: 66
FIGHT CARD
1. Featherweight 66kg
Ben Lucas (AUS) v Ibrahim Kendil (EGY)
2. Lightweight 70kg
Mohammed Kareem Aljnan (SYR) v Alphonse Besala (CMR)
3. Welterweight 77kg
Marcos Costa (BRA) v Abdelhakim Wahid (MAR)
4. Lightweight 70kg
Omar Ramadan (EGY) v Abdimitalipov Atabek (KGZ)
5. Featherweight 66kg
Ahmed Al Darmaki (UAE) v Kagimu Kigga (UGA)
6. Catchweight 85kg
Ibrahim El Sawi (EGY) v Iuri Fraga (BRA)
7. Featherweight 66kg
Yousef Al Husani (UAE) v Mohamed Allam (EGY)
8. Catchweight 73kg
Mostafa Radi (PAL) v Abdipatta Abdizhali (KGZ)
9. Featherweight 66kg
Jaures Dea (CMR) v Andre Pinheiro (BRA)
10. Catchweight 90kg
Tarek Suleiman (SYR) v Juscelino Ferreira (BRA)
PREMIER LEAGUE FIXTURES
Saturday (UAE kick-off times)
Watford v Leicester City (3.30pm)
Brighton v Arsenal (6pm)
West Ham v Wolves (8.30pm)
Bournemouth v Crystal Palace (10.45pm)
Sunday
Newcastle United v Sheffield United (5pm)
Aston Villa v Chelsea (7.15pm)
Everton v Liverpool (10pm)
Monday
Manchester City v Burnley (11pm)
THE SPECS
Engine: 1.5-litre turbocharged four-cylinder
Transmission: Constant Variable (CVT)
Power: 141bhp
Torque: 250Nm
Price: Dh64,500
On sale: Now
The story of Edge
Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, established Edge in 2019.
It brought together 25 state-owned and independent companies specialising in weapons systems, cyber protection and electronic warfare.
Edge has an annual revenue of $5 billion and employs more than 12,000 people.
Some of the companies include Nimr, a maker of armoured vehicles, Caracal, which manufactures guns and ammunitions company, Lahab
The%C2%A0specs%20
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%20Dual%20synchronous%20electric%20motors%20%20%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E646hp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E830Nm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3ETwo-speed%20auto%20(rear%20axle)%3B%20single-speed%20auto%20(front)%20%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh552%2C311%3B%20Dh660%2C408%20(as%20tested)%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3Enow%3C%2Fp%3E%0A
Profile of Foodics
Founders: Ahmad AlZaini and Mosab AlOthmani
Based: Riyadh
Sector: Software
Employees: 150
Amount raised: $8m through seed and Series A - Series B raise ongoing
Funders: Raed Advanced Investment Co, Al-Riyadh Al Walid Investment Co, 500 Falcons, SWM Investment, AlShoaibah SPV, Faith Capital, Technology Investments Co, Savour Holding, Future Resources, Derayah Custody Co.
UAE currency: the story behind the money in your pockets
The cost of Covid testing around the world
Egypt
Dh514 for citizens; Dh865 for tourists
Information can be found through VFS Global.
Jordan
Dh212
Centres include the Speciality Hospital, which now offers drive-through testing.
Cambodia
Dh478
Travel tests are managed by the Ministry of Health and National Institute of Public Health.
Zanzibar
AED 295
Zanzibar Public Health Emergency Operations Centre, located within the Lumumba Secondary School compound.
Abu Dhabi
Dh85
Abu Dhabi’s Seha has test centres throughout the UAE.
UK
From Dh400
Heathrow Airport now offers drive through and clinic-based testing, starting from Dh400 and up to Dh500 for the PCR test.
UAE currency: the story behind the money in your pockets
THE%20JERSEYS
%3Cp%3E%3Cstrong%3ERed%20Jersey%3C%2Fstrong%3E%0D%3Cbr%3EGeneral%20Classification%2C%20sponsored%20by%20Fatima%20bint%20Mubarak%20Ladies%20Academy%3A%20Worn%20daily%2C%20starting%20from%20Stage%202%2C%20by%20the%20leader%20of%20the%20General%20Classification.%0D%3Cbr%3E%3Cstrong%3EGreen%20Jersey%3C%2Fstrong%3E%0D%3Cbr%3EPoints%20Classification%2C%20sponsored%20by%20Bike%20Abu%20Dhabi%3A%20Worn%20daily%2C%20starting%20from%20Stage%202%2C%20by%20the%20fastest%20sprinter.%0D%3Cbr%3E%3Cstrong%3EWhite%20Jersey%3C%2Fstrong%3E%0D%3Cbr%3EYoung%20Rider%20Classification%2C%20sponsored%20by%20Abu%20Dhabi%20360%3A%20Worn%20daily%2C%20starting%20from%20Stage%202%2C%20by%20the%20best%20young%20rider%20(U25).%0D%3Cbr%3E%3Cstrong%3EBlack%20Jersey%3C%2Fstrong%3E%0D%3Cbr%3EIntermediate%20Sprint%20Classification%2C%20sponsored%20by%20Experience%20Abu%20Dhabi%3A%20Worn%20daily%2C%20starting%20from%20Stage%202%2C%20by%20the%20rider%20who%20has%20gained%20most%20Intermediate%20sprint%20points.%3C%2Fp%3E%0A
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
Mina Cup winners
Under 12 – Minerva Academy
Under 14 – Unam Pumas
Under 16 – Fursan Hispania
Under 18 – Madenat
SPECS
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%201.5-litre%204-cylinder%3Cbr%3E%3Cstrong%3EPower%3A%3C%2Fstrong%3E%20101hp%3Cbr%3E%3Cstrong%3ETorque%3A%3C%2Fstrong%3E%20135Nm%3Cbr%3E%3Cstrong%3ETransmission%3C%2Fstrong%3E%3A%20Six-speed%20auto%3Cbr%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20From%20Dh79%2C900%3Cbr%3E%3Cstrong%3EOn%20sale%3A%3C%2Fstrong%3E%20Now%3C%2Fp%3E%0A
SPECS
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