Etihad Airways confident about growth despite economic headwinds

The Abu Dhabi-based airline aims to triple its passenger numbers to 30 million by 2030

Etihad aims to grow by 10 per cent annually in the next seven years in terms of the number of passengers carried and available seats per kilometre. Chris Whiteoak / The National

Etihad Airways is confident about expanding its business despite signs of a global economic slowdown, its chief executive has said.

“The aviation industry is facing a big challenge right now [and] we are lucky to be in a region that’s growing, even though there are challenges in the global economy,” Antonoaldo Neves told delegates at the International Air Transport Association’s Ground Handling Conference in Abu Dhabi on Tuesday.

“We are in a region where the gross domestic product growth is at least 5 per cent, [and] when you see GDP growing 5 per cent, aviation grows by 10 per cent.”

The UAE, the Arab world’s second-largest economy, is estimated to have grown by 7.6 per cent last year, marking its highest expansion in 11 years, after GDP rose by 3.9 per cent in 2021, according to the UAE Central Bank.

In the Mena region, real GDP grew by 5.3 per cent in 2022, reflecting strong domestic demand and a rebound in oil production, according to the International Monetary Fund.

However, growth is expected to decelerate this year to 3.1 per cent before picking up slightly to 3.4 per cent next year, the fund has said.

The region’s aviation industry will witness “amazing” growth over the next decade, Mr Neves said.

Etihad Airways aims to triple its passenger numbers to 30 million and double its fleet to 150 planes by 2030.

The Abu Dhabi-based airline plans to grow by 10 per cent annually in the next seven years in terms of the number of passengers carried and available seats per kilometre.

“I don't see any reason why this airline cannot deliver 30 million passengers here … and this is only possible because of the great infrastructure that we're going to be using later this year in Abu Dhabi,” said Mr Neves.

Abu Dhabi's much-awaited new Midfield Terminal is expected to open towards the end of this year.

The Iata event comes before the start of the peak summer travel season in Europe, which has raised concerns about capacity at airports and widespread delays.

The industry has also been facing severe staffing shortages as travel demand surges following the lifting of Covid-19 restrictions last year.

“While some disruptions can be expected, there is a clear expectation that the ramping-up issues faced at some key hub airports in 2022 will have been resolved,” said Nick Careen, Iata’s senior vice president for operations, safety and security, during a media roundtable at the event.

“We know that airlines have done everything in their power to be ready, whether that's in terms of staffing, equipment [or] … working with airports around the world.”

An Iata survey released on Tuesday found that forward bookings were growing significantly in the Asia-Pacific region, the Middle East and Europe.

A large majority of travellers surveyed are planning a trip between June and August this year, the survey found.

While 85 per cent of the respondents said that disruptions during the peak travel season should not be a surprise, 80 per cent expect seamless travel with post-coronavirus challenges having been resolved, the report said.

Global passenger traffic rebounded to 15 per cent below its pre-pandemic levels in February, led by airlines in the Asia-Pacific, which recorded the fastest growth, Iata said in a report last month.

Total passenger traffic worldwide increased by 55.5 per cent on an annual basis in February, despite the uncertainty hanging over the global economy, the industry body said.