Etihad's Growth Goal with 16 New Airbus Orders

Etihad's Growth Initiative

With the improvement of global economic conditions, the Abu Dhabi-based airline Etihad has placed a total order for 16 new aircraft from Airbus. The order includes six A330-900, seven A350-1000, and three A350F freighters. The two companies have not yet disclosed the financial details of the deal; however, it is known that airlines typically negotiate lower prices for large orders.

Etihad achieved a record profit of $476 million in 2024. This profit is part of the Abu Dhabi-based airline's financial recovery efforts. Nevertheless, this profit remains significantly lower compared to the $5.2 billion record profit achieved by the Emirates airline in the past financial year. However, this situation represents a significant transformation for Etihad.

Founded in 2003 to compete with Emirates, Etihad entered a rapid growth phase shortly after its establishment. However, Etihad faced difficulties with its business plan and had to implement cost-cutting measures even before the coronavirus pandemic. Since 2016, Etihad has been trying to compete with Emirates and Qatar Airways by acquiring stakes in airlines from Europe to Asia, resulting in losses of approximately $6 billion.

This week, Emirates placed an order for 65 of Boeing's new 777-9 aircraft. The value of this order is estimated at $38 billion based on list prices. Tim Clark, president of Emirates, acknowledged delays in the delivery of the 777-9 but noted that their large order would also impact the administration of President Donald Trump.

Clark stated, “I think Congress's pressure on Boeing will increase; this will be crucial for accelerating production.” He added, “Especially the construction of the 9X model in Seattle provides decades of employment in the northwest.”

In addition to Emirates, its low-cost subsidiary FlyDubai will also find opportunities to open more routes with new aircraft. Dubai plans to expand Al Maktoum International Airport with a $35 billion project; this project aims to be completed within the next decade and will include five parallel runways and 400 aircraft gates. Clark stated, “We will have the ability to reach every corner of the world.”