Etihad CEO Plans Big Capacity Ramp On Routes Amid Strong Gulf Demand

Aaron Karp November 27, 2024

Antonoaldo Neves has been CEO of Etihad since 2022.

Credit: Etihad Airways

Even as Etihad Airways rapidly expands its network, with 13 new destinations already planned to be added in 2025, most of its growth next year will come from putting more capacity on existing routes, according to CEO Antonoaldo Neves.

Speaking at a press conference following the announcement of 10 new routes to be added to Etihad’s network in 2025, Neves said: “80% of the capacity that we're going to add next year is in destinations that we fly to today. So these [new] destinations are only 20% of the capacity that we're going to add next year—we are also betting on destinations that we are flying today.”

The Abu Dhabi-based airline currently operates to around 80 destinations from its Zayed International Airport (AUH) hub. Atlanta, when launched next July, will become its fifth point in the U.S. after Boston Logan, Chicago O’Hare, New York John F. Kennedy and Washington Dulles.

Arik De, Etihad’s chief revenue and commercial officer, said Europe is an example of a region where capacity is being added on existing routes. He noted the carrier will have grown capacity by 40% to Europe in 2024 and another 40% will be added in the first half of 2025.

De said AUH is an ideal connection point between Europe and Asia. “Two years ago we only had London Heathrow as a destination where we flew more than one flight a day,” he said. “If you look at our map—London, Dublin, Manchester, Geneva, Frankfurt, Munich, Brussels, Madrid, Barcelona, Rome, Zurich, Milan—all of them are going to double-daily [in 2025].”

De said more routes to Europe are on the horizon. “We are right now analyzing” potential AUH-Europe routes, he said. “My network team tells me there are 25 new potential places in Europe. That doesn't mean all 25 will become reality. But we will be announcing [more European] destinations in the near future.”

Regarding new routes to Europe, De added: “Antonoaldo has already given me a goal—10 per year. But right now it is building on the European growth that we've invested in to [enable] traffic going to the East.”

Additional aircraft are needed to support the ramp, as outlined by Neves in a fleet update. De noted most of Etihad’s 2025 route launches will occur in the second half of 2025. “Many of the planes originally slated for [delivery in] the first half of next year have been pushed to the second half,” leading the carrier to put in place a “3-6 month buffer” for new routes, he said.

Gulf Potential

“This is a huge, rapidly growing region—over 10% annual [air traffic] growth,” Neves said. “We're seeing major expansion from [Indian] airlines like Air India, IndiGo and Akasa.”

Neves said Etihad is expecting passenger traffic growth of “about 35% this year, triple the 12% growth rate of the UAE overall. We believe there is space for multiple successful carriers to coexist in this market … Etihad, Emirates and Qatar are all growing profitably.”

De added: “The region's strong economic and demographic trends, including the UAE emerging as the top aspiration destination for Indian travelers, provides us with optimism and ambition for the future. If you ask Indians today what’s their number one aspiration destination, they will tell you the UAE is number one on their list, by a far margin. The economic growth and the interconnected demographic growth are indicators that give us optimism and ambition for the future.”