Etihad Airways is now projecting to break even in 2026, a reversal from an earlier forecast that suggested a potential annual loss. This positive outlook is driven by robust demand, with the airline operating at 90% capacity and generating positive cash flow, complemented by a thriving air cargo sector. The airline recorded a profit in August and maintained steady airfares despite increased jet fuel costs, adding 15% capacity year-on-year in July.
Despite the ongoing Iran war and its implications for regional air travel, including longer routes and higher jet fuel prices, Etihad's CEO, Antonoaldo Neves, expressed confidence in the airline's resilience, stating, "We are breaking even this year. We are not budgeting for a loss this year. We see demand very, very strong." He noted that the airline is only 1% to 2% behind its budget for the year, with a 15% growth in Available Seat Kilometers (ASKs) against an original target of 18%. Etihad plans to increase its daily flights by 25% from 320 to approximately 400 by the end of 2027, with expansion expected in China, Africa, and Latin America.
Neves highlighted that the biggest risk facing Etihad is not demand, but the cost of jet fuel. The airline's fuel bill is approximately $2 billion annually. While Etihad has a strong hedging position and has kept airfares stable, absorbing additional costs, Neves is concerned about sustained high prices affecting airfares next year. Despite these challenges, Etihad is "doubling the bet" on growth, investing $2 billion annually in new aircraft, talent, and products. The airline expects to finish 2026 with around 140 aircraft, up from 70 in 2022, and is focusing on premium travel with new cabin designs for its Airbus A321LR and A330 Neo, and future plans for A350-1000 and Boeing 777X widebody models.
