Etihad Airways postpones initial public offering

Etihad Airways, the national airline of the United Arab Emirates, will postpone the launch of its initial public offering (IPO) until the second quarter of this year, after the Muslim holiday Eid al-Fitr, which marks the end of Ramadan (March 30), Reuters reports, citing industry sources, according to ch-aviation.com.

The Emirati carrier was expected to announce the IPO at the end of February, but the plans did not materialize. The source cited mentions that the primary offering will put 2.7 billion shares on the market, allowing new investors to take up to 20% of the airline's shares. Etihad aims to raise $1 billion in this way.

The reason for the postponement of the IPO is currently unknown. The airline declined to comment when approached by ch-aviation.

Etihad Airways is owned by sovereign wealth fund Abu Dhabi Developmental Holding Company (ADQ). The airline is seeking to attract both domestic and international investors in the IPO. It would be the first Gulf carrier to list in nearly 20 years. The last airline from the region to list on the stock exchange was Kuwait's Jazeera Airways in 2008.

Other airlines in the region may also change their ownership structure soon, according to Reuters. Saudi Arabia's Flynas could list in 2025, while Qatar Airways is considering a listing by the end of the decade.

• Etihad Airways - the highest profit in its history

Etihad Airways reported in February, for 2024, the highest annual profit in its history, of 1.7 billion dirhams ($ 476 million), compared to only 523 million dirhams in 2023. The company recorded a 32% increase in the number of passengers last year, from 14 million in 2023, to 18.5 million in 2024. At the same time, Etihad Airways recorded revenues of 6.8 billion dollars, up from 5.5 billion dollars the previous year, and EBITDA increased by 32% compared to last year, to 1.3 billion dollars. The passenger load factor reached 87%.