Etihad Airways CEO Antonoaldo Neves IATA Interview

Summary

Etihad Airways CEO Antonoaldo Neves discusses the airline's rapid capacity recovery after a regional conflict, strong corporate and leisure demand, and the impact of elevated fuel prices on pricing. He highlights the structural advantages of Middle Eastern carriers in terms of efficiency and seasonality, and notes that Etihad is securing aircraft slots from other airlines facing uncertainty.

• Etihad's capacity recovered to 85-90% of pre-conflict levels and is expected to exceed last year's by 10% in summer.
• Corporate travel into and out of Abu Dhabi is as strong as before, while connecting flows are being compensated by booming routes like India to the US.
• Average fares are back to pre-conflict levels, but jet fuel prices are 60-70% higher, compressing margins.
• The CEO expects jet fuel futures to decline gradually, which may allow airlines to raise fares if fuel doesn't drop.
• Middle Eastern carriers have a 10-point cost advantage over European rivals due to lower personnel costs, which is reinvested in product and fares.
• Global travel demand remains strong, driven by Southeast Asian value destinations and growing populations in regions like the Middle East and India.
• Etihad is acquiring new aircraft for 2028-2032 delivery and signing contracts to bring in 5-10 incremental widebodies from partners next year.
• Airlines with less seasonal demand, such as Etihad, are better positioned than those dependent on summer peak traffic.