Speaking to CNBC-TV18 on the sidelines of the IATA Annual General Meeting in Rio de Janeiro, Etihad CEO Antonoaldo Neves said the airline is currently operating at around 85% of its available seat capacity and expects to reach 110% of pre-conflict levels by mid-June.
“We started flying again three days after the first attacks,” Neves said.
“We started at 20% or 30%. Right now, we are flying at about 85% of our ASKs. On 15 June, we’re going to be at 110% — more than ever before.”
‘We felt protected’
Neves described the conflict as an extraordinary period for the region, noting that the UAE was able to maintain confidence despite repeated attacks.
“The first thing that comes to my mind is how the entire community in Abu Dhabi came together to protect itself,” he said.
“We felt protected the whole time.”
According to Neves, the UAE established dedicated corridors for civil aviation and implemented safety protocols that allowed airlines to gradually resume operations.
“We never fly if there’s a risk,” he said.
“Safety comes first. We only fly when it’s safe to do so.”
Passengers have returned
While many airlines globally continue to grapple with uncertainty linked to geopolitical tensions, Neves said customer confidence has returned quickly.
Etihad’s load factors have recovered to around 84%, while average fares have returned to pre-conflict levels.
“Passengers are back,” he said.
“My biggest cost is an empty plane. We don’t fly empty planes.”
Fuel remains the biggest concern
While safety and operational continuity have improved significantly, Neves acknowledged that fuel prices remain a challenge for airlines across the region.
“Availability, no. Prices, yes,” he said when asked about concerns regarding jet fuel.
According to Neves, jet fuel in the Middle East is currently trading at around $150–$160 per barrel, almost double previous levels.
However, he said Etihad’s fuel-hedging strategy has helped cushion the impact.
“We have a very good hedging position that’s helping us a lot.”
As a result, while profitability may fall short of earlier expectations, Neves remains optimistic about the airline’s financial performance.
“We are not going to make as much money as we had planned to make this year. But this is not going to be a bad year for Etihad.”
Expansion plans remain intact
Despite the conflict and higher fuel prices, Etihad is not pulling back on growth.
Instead, the airline plans to expand its fleet and continue investing in long-haul operations.
“We are doubling down. We are ordering planes this week,” Neves said, without disclosing the number.
The order will consist of wide-body aircraft aimed at supporting long-haul expansion, although the airline has not disclosed the size of the deal.
Looking ahead, Neves expects the second half of the year to resemble normal operating conditions.
“I think the second half is going to be business as usual,” he said.
While acknowledging that uncertainty is a permanent feature of the airline business, he said Etihad’s approach is to adapt quickly whenever conditions change.
“There is always uncertainty,” Neves said.
“My Plan B is always to move fast. If I move fast and adapt quickly, then I’m executing my Plan B.”
Key UK English changes include: 15 June (instead of June 15), came together, the whole time, fuel-hedging strategy, and minor punctuation and syntax refinements for readability and publication style.