Etihad expects 2026 break-even and strong demand despite Iran war

Etihad Airways anticipates breaking even in 2026 despite the ongoing Iran war, contrary to a June forecast of an annual loss. The Abu Dhabi airline is currently operating with planes 90% full, generating positive cash flow and experiencing growth in its air cargo business. CEO Antonaldo Neves highlighted strong demand during a visit to the Arabian Travel Market, noting that the airline has added 15% capacity year-on-year and held air fares constant despite rising jet fuel prices.

This development follows a record annual profit after tax of Dh2.6 billion ($707.9 million) in 2025, a 47% increase from 2024. In June, Neves had expressed uncertainty about profitability, citing the impact of the Iran war on regional air travel, leading to longer routes and higher fuel costs. However, he stated that Etihad is only 1-2% behind its budget for the year, with a 15% increase in Available Seat Kilometres (ASKs) compared to the original target of 18%.

The airline plans to double its efforts by continuing to purchase aircraft, hire talent, and introduce new products. Neves revealed that Etihad is currently operating 320 flights daily and aims to increase this to 400 flights by the end of next year, representing a 25% growth. In terms of future expansion, Etihad is set to launch a new premium cabin on its Airbus A321LR and a first-class cabin on its Airbus A330 Neo, with the latter scheduled to enter service in 2027.

Furthermore, the airline plans to introduce a next-generation first-class cabin for its Airbus A350-1000 and Boeing 777X in 2029 and 2032, respectively.

Neves emphasized Etihad's ability to navigate the crisis, attributing its success to a strong balance sheet, ongoing investments in people and products, and a history of turning losses into profits. The airline has demonstrated resilience, having eliminated losses in 2022 after years of restructuring that began in 2016. He expressed confidence in continued investment and growth, particularly in emerging markets such as China, Africa, and Latin America, with expansion in these regions anticipated in 2028 or 2029.