Etihad Airways expects to reach break-even this year amid high jet fuel costs and regional conflicts, its chief executive said.
“We’re hoping to make money this year, not a lot, but make money. I think it’s more break-even because of the recent developments in jet fuel,” Antonoaldo Neves told Khaleej Times in an interview on the sidelines of the first day of the Arabian Travel Market (ATM) 2026, which began at the Dubai World Trade Centre on Monday.
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In 2025, the Abu Dhabi-based airline said its profit grew 47 per cent year-on-year to Dh2.6 billion on the back of strong growth in its passenger and cargo businesses.
Neves also last year announced plans to invest a massive Dh80 billion ($21.8 billion) in new aircraft purchases and product development over the next 10 years.
“We have a plan to invest Dh80 billion in the next 10 years in new aircraft, new products and product enhancements. We’re going to receive about 20 aircraft per year for the next five years. This is a sector that you’re going to be careful with,” he said last year.
Fuel biggest concern
Neves added that fuel remains the airline’s single biggest cost and its top challenge heading into next year.
“If fuel costs don’t go down, we’ll have to pass them on through fares, and we don’t want to do that. We like low fares,” he added, saying it was too early to predict how long airlines could absorb higher costs before raising fares.
Oil prices surpassed $100 a barrel last week again due to the Middle East war. On Monday afternoon, Brent and WTI were trading over three per cent higher at $108.2 and $103.2 a barrel, respectively.
In addition, the regional conflict also took a toll on the airlines and overall aviation industry, especially during the first couple of months after the US-Israel-Iran war broke out on February 28, 2026.
Etihad chief noted that Middle East carriers are particularly exposed because, unlike airlines in the US, they are largely unable to pass rising fuel costs on to passengers through higher fares. Airlines in the region that are not hedging fuel costs “may suffer this year,” he said, with average fares running roughly flat against last year.
First half performance
Despite the fuel pressure, Etihad’s overall performance over the past six months has been resilient.
Neves said January and February were the airline’s best-ever months, followed by a “transition phase” in March, April and May, when regional conflict forced the carrier to cut capacity.
Operations have since normalised, with Etihad now flying 15 per cent more capacity than during the same period last year – a growth rate Neves said made it the only carrier in the region expanding year-on-year.
July 2026 profits came in higher than in July last year, though August was slightly weaker; combined, the two months were roughly level with the prior year. Average fares were broadly flat, and the August load factor stood at 92 per cent.
On Monday, Etihad unveiled its new “Beyond Borders” cabin generation, extending its first-class product – first introduced on the Airbus A321LR – across its A330neo fleet, alongside a refreshed cabin look inspired by Abu Dhabi’s cultural landmarks.
“We want to make sure that we are an extension of Abu Dhabi. We want to make sure that the same amazing feeling you get when you enter the Zayed National Museum, you get in our plane,” Neves said.
Etihad expects to take delivery of around 15 more aircraft this year, with only minor delays that have not affected its broader fleet plans, Neves said.
Asked again about a potential initial public offering (IPO), Neves repeated that there has been no change in the airline’s position.
Source: Khaleej Times