Etihad Airways Forecasts 2026 Break-Even Amid Robust Demand Despite Regional Conflict

Etihad Airways now anticipates breaking even this year, driven by robust demand despite the ongoing Iran war, which marks a turnaround from its previous forecast in June that warned of a potential annual loss. Chief executive Antonoaldo Neves shared with The National on Monday at the Arabian Travel Market that the Abu Dhabi airline is operating with planes 90 percent full, generating positive cash flow, and benefiting from a booming air cargo sector.

The airline expanded its capacity by 15 per cent in July year-on-year, secured a profit in August, and maintained air fares at last year's levels despite rising jet fuel prices. Mr Neves stated that they are not budgeting for a loss this year and continue to see very strong demand, following Etihad's record annual profit after tax of Dh2.6 billion ($707.9 million) in 2025, which represented a 47 per cent increase from 2024. Earlier in June, Mr Neves had indicated that profitability was uncertain due to regional disruptions from the Iran war that forced longer routes and increased fuel costs.

Currently, the airline is only one to two per cent behind its annual budget, achieving 15 per cent growth in Available Seat Kilometres (ASKs) compared to the initial target of 18 per cent. Mr Neves noted that Etihad is continuing to acquire aircraft, hire personnel, and invest in new products. Operating 320 daily flights currently, the carrier aims to increase this by 25 per cent to roughly 400 flights by the end of next year. Having completed a multi-year restructuring program before returning to annual profitability in 2022, Mr Neves described the regional crisis as a major test that the airline successfully passed.

Highlighting a focus on premium travel on the first day of the ATM, Etihad revealed a new premium cabin for its current Airbus A321LR narrowbody and a first-class cabin slated for its Airbus A330 Neo entering service in 2027. Mr Neves added that further fleet growth is planned for next year in markets across China and Africa, with Latin American expansion expected in 2028 or 2029.