Etihad Airways signals possible IPO after 2023 revenue rebound

Abu Dhabi’s Etihad Airways is gearing up for a potential initial public offering after increasing revenue in 2023 on the back of a 40% boost in passenger numbers.

Asked about a possible listing, Etihad Airways Group CEO Antonoaldo Neves told CNBC on Tuesday, “I’m working to be ready, whenever it’s the time.”

Talk of an IPO has been swirling after it was reported that ADQ, the Abu Dhabi-based investment company that owns Etihad Airways, was in discussions with banks about going public as soon as this year.

“It’s not for me to confirm the shareholder decisions,” Neves said, while also signaling efforts to prepare the airline. “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.”

If it materializes, an IPO would enable Etihad to tap capital markets to fund future growth and expansion plans. It would also make it the first major Gulf carrier to become publicly traded, after years of speculation surrounding the listing of Dubai-based rival Emirates.

“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, adding that “management are putting a lot of effort in place so that the company can be compared to any other company that is listed.”

Since joining the airline in 2022, Neves has limited losses and invested in the customer experience after Etihad’s ownership transfer to ADQ during the Covid-19 pandemic. The investment company has already launched a number of high-profile IPOs in recent years, including Abu Dhabi Ports and Pure Health.

ADQ declined to comment about possible listing plans.

Neves has previously led cost cutting and fleet upgrades at Portuguese national airline TAP and brought Azul Airlines public in New York in 2017. Etihad’s CFO Raffael Quintas also served as CFO of TAP and as corporate treasurer at Azul.

A listing would mark a significant step for…