Etihad Airways secures $14.5 billion deal despite Boeing delivery delays
- Etihad Airways announced a $14.5 billion deal for 28 wide-body aircraft amid ongoing Boeing delivery delays.
- The airline reported a record profit of $186.5 million in Q1 2025 due to increased demand and efficiency.
- Etihad Airways is restructuring its operations and preparing for a potential IPO while managing the challenges of aircraft deliveries.
Abu Dhabi's Etihad Airways, on May 21, 2025, stated its confidence in managing the ongoing challenges stemming from delays in Boeing's aircraft deliveries. The airline's CEO, Antonoaldo Neves, revealed that a more diligent approach to fleet planning enables them to better absorb potential setbacks. This announcement coincided with a major multibillion-dollar deal, in which Etihad ordered 28 wide-body aircraft, including models such as the Boeing 787 Dreamliner and the 777X, during President Donald Trump's visit to the UAE. This deal, valued at $14.5 billion, comes as the airline's profitability increases, reporting a 30% rise in profit after tax, reaching a record $186.5 million in the first quarter of 2025. Strong demand and improved operational efficiencies, according to Etihad, are key drivers behind this financial success. CEO Neves indicated their cautious approach regarding the aircraft's delivery schedules, suggesting positive news from Boeing may emerge in the next six to twelve months. While the airline does not have exposure to the problematic Boeing 737 model, it continues to face challenges with the 777X, which is still undergoing certification and is projected for delivery after 2030. In addition to managing aircraft procurement, the airline is restructuring operations to focus more on profitability and agility, signaling potential preparations for an initial public offering (IPO) in the future. Neves reiterated the complicated nature of choosing an IPO timeline, emphasizing the need to balance margin increase with shareholder requirements. Meanwhile, the aviation industry faces uncertainties driven by trade disputes and tariffs that could impact global growth. Overall, Etihad’s proactive strategy in expanding its fleet indicates confidence in its recovery and growth potential amidst external pressures. The airline remains focused on enhancing its operational efficiency and navigating through the tempestuous external environment, positioning itself favorably for future developments.