Etihad Airways plans to increase capacity beyond its pre-Iran War levels within days and is finalizing a massive new order for widebody aircraft, despite continuing uncertainty in the Middle East, its chief executive, Antonoaldo Neves, has confirmed.
The Abu Dhabi-based airline is currently operating up to 78% of its pre-war schedule, but by June 15, Neves claims the carrier will have added around 8% more capacity than it was operating before February 28, when the U.S. and Israeli conflict with Iran began.
Abu Dhabi Zayed International Airport escaped relatively unscathed during Iran’s massive bombardment of ballistic missiles and kamikaze drones fired towards the UAE throughout March and April, although one civilian tragically died when debris from a low-altitude drone interception fell on the outskirts of the airport.
Etihad Airways was forced to temporarily ground its flight at the start of the conflict when UAE authorities shuttered airspace across the region, although there was far less disruption around Abu Dhabi than in neighboring Dubai, which took the brunt of Iran’s aggression.
Following years of shrinking back to profitability, Neves was brought in to accelerate the airline’s growth plans, with his ‘Journey 2030’ transformation program marking a “pivotal turning point in Etihad’s journey.”
Journey 2030 will see Etihad Airways expand its route network to 125 global destinations and double its fleet size to 160 aircraft.
Last May, the airline placed an order for 28 additional wide-body Boeing aircraft, including 787 Dreamliners and the yet-to-be-certified Boeing 777X.
Speaking on the sidelines of the International Air Transport Association’s (IATA) annual general meeting in Brazil, Neves struck an optimistic tone despite the continuing security issues impacting travel demand through the Persian Gulf.
Neves claimed the airline was planning a ‘double-digit’ widebody aircraft order, although refused to provide any further details. The Boeing 787 Dreamliner has become the workhorse of Etihad’s fleet, although the airline also operates the Boeing 777 and the Airbus A350-1000.
In order to cut costs, Neves said his plan wasn’t to ground planes but to put as many aircraft into operation as possible, claiming that a grounded plane costs more than one in operation.
Etihad’s turnaround is a truly remarkable story. In 2016, the airline reported a mammoth $1.87 billion loss after an equity investment plan in second-tier airlines, coupled with rapid expansion, went disastrously wrong.
The airline headhunted Tony Douglas to get costs back under control, embarking on a fierce cost-cutting programme that, at one point, threatened to turn Etihad into a small boutique carrier on the same scale as Gulf Air.
In 2022, Etihad posted a core operating profit of US $296 million, compared to a near $400 million loss during the same period in 2021. Several months later, Abu Dhabi’s government-controlled sovereign, ADQ, took full control of the Etihad Airways Group.
The era of cost-cutting was over. Douglas stood down for Neves to take the reins of what the airline called its “next phase of sustainable growth”.
In 2025, Etihad posted a post-tax profit of $698 million, with passenger numbers increasing by 21% year-on-year to 22.4 million.
