Etihad Airways has increased its summer flying capacity by 10 per cent compared with the previous year, operating more than 300 flights a day, as passenger traffic to Abu Dhabi recovers from the disruption caused by the Iran war.
The Abu Dhabi carrier is flying at close to 90 per cent load factors, supported by a fleet that has increased by 23 aircraft over the past year, it said in a statement.
The airline had been operating at about 85 per cent of capacity in early June, chief executive Antonoaldo Neves said at the International Air Transport Association (Iata) annual meeting in Rio de Janeiro. It is expected to pass pre-war levels by the middle of the month.
The expansion follows months of travel disruption across the Gulf. The UAE confirmed a full resumption of air traffic on May 2. On June 9, Etihad operated 247 flights, down from 334 on February 27, the day before the war began. Strong demand from corporate travellers and UAE residents has helped drive the recovery, alongside robust traffic between the US and India routed through Abu Dhabi, Mr Neves said.
Bookings are expected to fully recover by August, a month Mr Neves described as particularly promising. Load factors still trail pre-war levels by 3 per cent for June and 5 per cent for July, before the gap is to close. Corporate travel to and from Abu Dhabi has returned to pre-war levels, though some travel advisories have slowed transit business traffic.
Iata expects this year to leave Middle East carriers with a collective $4.3 billion loss, the only region forecast to lose money in 2026, because of its exposure to the conflict. Mr Neves has said Etihad will hold airfares near pre-war levels despite higher jet fuel prices, referring to a hedging programme that covers a cost making up about 30 per cent of the airline's expenses. He expects fuel to stay elevated until the end of the year as shipments take time to normalise even after the Strait of Hormuz reopens.
The war has not altered Etihad's growth plans, Mr Neves said, with the carrier adding wide-body jets including Airbus A350s, A330neos and Boeing 787s as it invests $2 billion annually in new aircraft. Deliveries are expected from 2028 after Etihad secured earlier slots. "We're going to do more, quicker and faster of everything," he added.
Etihad and the Department of Culture and Tourism in Abu Dhabi last week introduced complimentary medical insurance for international visitors, covering eligible travellers for up to 15 days in the UAE from July to December. Emirates is preparing a similar offer, with president Tim Clark saying the carrier would guarantee passengers' return home, even on rival airlines if needed.
