ABU DHABI, United Arab Emirates — Abu Dhabi’s Etihad Airways says it can navigate the turbulence surrounding Boeing ‘s delivery delays, even as it doubles down on a major 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 absorb potential setbacks in aircraft delivery schedules. “Boeing is improving and ramping up,” Neves said. “We feel confident, and I think Boeing is getting back on track.” His comments come after the airline announced a $14.5 billion deal 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 part of more than $200 billion in commercial deals revealed last week between the United States and the United Arab Emirates. “I think we’re going to see very good news from Boeing in the next six months to one year,” Neves said. “We don’t 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, like the wide-body twin engine 777x, which is still awaiting certification. Boeing expects the aircraft to obtain certification and begin deliveries in 2026. But Etihad’s 777x “is going to arrive only after 2030,” Neves told CNBC, “so we intentionally ordered the plane a little bit later so that this phase of certification would go away.” Boeing’s stock price has climbed 17% in the year to date, 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 target from a previous $218 to $249 per share. The Etihad order expands the airline’s long-haul capabilities, but also exposes the mid-sized Gulf carrier to delivery risks, as Boeing continues to confront regulatory and supply 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. “As far as our planes are concerned, we are in good shape because 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 year, 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 both passenger and cargo business. “The environment is helping a lot,” Neves said. “A lot of our focus on 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 capacity, an ongoing network expansion and more frequent flights. “We will never take decisions on short term changes,” Neves said when asked about the impact of U.S. tariffs on global travel demand. “We don’t see any impact whatsoever, and we’re really excited about 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 finances, focusing instead on profitability and agility. as it prepares for a potential 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 very complicated question, because it not only takes into consideration margin expansion, but also what are the shareholders specific needs — and that’s for ADQ to say,” Neves said.
Etihad Airlines plane at JFK airport, New York City.
Source: WNBC
ABU DHABI, United Arab Emirates — Abu Dhabi’s Etihad Airways says it can navigate the turbulence surrounding Boeing‘s delivery delays, even as it doubles down on a major 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 absorb potential setbacks in aircraft delivery schedules.
