ABU DHABI, United Arab Emirates — Abu Dhabi’s Etihad Airways says it could possibly navigate the turbulence surrounding Boeing ‘s delivery delays, whilst it doubles down on a significant wide-body order and a multibillion-dollar fleet overhaul. Speaking on CNBC’s “Access Middle East” on Wednesday, Etihad CEO Antonoaldo Neves said the airline is taking a more “diligent” approach to fleet planning, allowing it to soak up potential setbacks in aircraft delivery schedules. “Boeing is improving and ramping up,” Neves said. “We feel confident, and I feel Boeing is getting back heading in the right direction.” His comments come after the airline announced a $14.5 billion cope with Boeing and GE Aerospace for 28 wide-body aircraft, including Boeing 787’s and 777X’s, during President Donald Trump’s recent visit to Abu Dhabi. The agreement is a component of greater than $200 billion in business deals revealed last week between the USA and the United Arab Emirates. “I feel we’ll see excellent news from Boeing in the following six months to at least one yr,” Neves said. “We do not take the 737 from Boeing, we take [the] 787 and on the 787 schedule.” The Boeing 787 Dreamliner is a mid-sized, wide-body twin-engine aircraft. The CEO acknowledged “challenges in other programs” that the airline ordered, just like the wide-body twin engine 777x, which continues to be awaiting certification. Boeing expects the aircraft to acquire certification and start deliveries in 2026. But Etihad’s 777x “goes to reach only after 2030,” Neves told CNBC, “so we intentionally ordered the plane a bit of bit later in order that this phase of certification would go away.” Boeing’s stock price has climbed 17% within the yr thus far, trading at $207.67 per share at market close on Tuesday. Analysts at Bernstein reiterated their Outperform rating for the American aerospace giant this week, upping their price goal from a previous $218 to $249 per share. The Etihad order expands the airline’s long-haul capabilities, but in addition exposes the mid-sized Gulf carrier to delivery risks, as Boeing continues to confront regulatory and provide chain challenges. Delays across Boeing’s production lines, particularly for the 737 MAX and 787 programs, have disrupted fleet plans at other global carriers. “We add as we go,” Neves said. “So far as our planes are concerned, we’re in fine condition since the 787 is coming out of the factory on time now.” But Boeing is now under intense pressure to deliver after Qatar Airways — a key Etihad rival — stunned the industry with a record breaking order for 210 jets during President Trump’s visit. Last yr, Etihad announced a $7 billion dollar five-year plan to retrofit and upgrade its current aircraft, including a refresh of cabin interiors and upgraded service offerings, to compensate for further aircraft delivery delays. Earnings Growth Etihad on Wednesday also reported a 30% increase in profit after tax to a record $186.5 million in its first quarter, driven by what it said was strong demand and improved efficiencies. Total revenue rose 15%, supported by growth in each passenger and cargo business. “The environment helps rather a lot,” Neves said. “Numerous our give attention to efficiency is paying back, so the airline is improving and expanding its margins.” First-quarter passenger revenue also climbed 16% to $1.5 billion, driven by increased capability, an ongoing network expansion and more frequent flights. “We’ll never take decisions on short term changes,” Neves said when asked in regards to the impact of U.S. tariffs on global travel demand. “We do not see any impact in any respect, and we’re really excited in regards to the forward curves,” he added. Emirates Airline President Tim Clark recently told CNBC that the aviation industry was in “uncharted territory,” as U.S. tariffs and trade disputes weigh on global growth and threaten to drive up costs for airlines worldwide. IPO Talk Etihad has also been working on restructuring its operations and funds, focusing as a substitute on profitability and agility. because it prepares for a possible initial public offering. The airline, which is owned by Abu Dhabi sovereign wealth fund ADQ, has still not confirmed a timeframe for its potential listing. “IPO timing is a really complicated query, since it not only takes into consideration margin expansion, but in addition what are the shareholders specific needs — and that is for ADQ to say,” Neves said.
Etihad Airlines plane at JFK airport, Recent York City.
Source: WNBC
ABU DHABI, United Arab Emirates — Abu Dhabi’s Etihad Airways says it could possibly navigate the turbulence surrounding Boeing‘s delivery delays, whilst it doubles down on a significant wide-body order and a multibillion-dollar fleet overhaul.
Speaking on CNBC’s “Access Middle East” on Wednesday, Etihad CEO Antonoaldo Neves said the airline is taking a more “diligent” approach to fleet planning, allowing it to soak up potential setbacks in aircraft delivery schedules.
