Etihad announces flights to 10 new destinations, including Atlanta, Hanoi, Hong Kong and Tunisia


Hayley Skirka
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Etihad Airways has announced 10 new direct routes from Abu Dhabi to destinations in Asia, Africa and the United States – including Hong Kong and Atlanta.

As part of its expansion plans for next year, which chief executive Antonoaldo Neves predicts will be the company's biggest ever, the UAE's national airline is now selling tickets to and from seven destinations in Asia, two in Africa and Atlanta on the US Eastern Seaboard.

Atlanta will be the first of the 10 new routes to take off, with flights scheduled to begin on July 2, 2025. When that happens, Etihad will be the only airline offering direct flights between the UAE and the capital of Georgia.

Flights to Taipei in northern Taiwan will start in September, followed by new routes to Medan, Phnom Penh and Krabi in October and Tunis, Chiang Mai, Hong Kong, Hanoi and Algiers in November. Tickets for each destination are already on sale.

Abu Dhabi tourism is 'going to explode'

Mr Neves said Etihad is on track for its biggest year, thanks in part to the expansion of Zayed International Airport. “In 2025, we're going to have 21 million passengers,” he said. “And departures will go from 56,000 in 2022 to more than 100,000, something that would never have been possible at the old terminal.”

Abu Dhabi tourism is going to 'explode' in 2025, says Eyihad Airways chief executive Antonoaldo Neves. Photo: Shutterstock
Abu Dhabi tourism is going to 'explode' in 2025, says Eyihad Airways chief executive Antonoaldo Neves. Photo: Shutterstock

In addition to expanding its network, Etihad has also outlined plans to fly more frequency to European destinations in the first half of next year and says it will prioritise scheduling to make travel times more convenient.

“Now tourists who come to Abu Dhabi from Italy, France, Germany, Spain, Russia or Switzerland – six destinations that are huge countries in Europe – can come to the UAE on a very convenient flight schedule.” added Mr Neves. “They arrive around 9 or 11am, go to the hotel. And then when they come back they can leave the hotel at 7am or 9am. It's perfect timing for tourists, so you're going to see the number of tourists explode next year.”

Etihad hopes its focus on Asia will increase the number of tourists visiting Abu Dhabi. “In the first part of this year, we had around 40 per cent capacity growth into Europe,” said Arik De, chief revenue and commercial officer. “Going into next year, we're going to add around 36 per cent capacity. That growth enables us to unlock this eastern network. Then it's not only amazing for the UAE, because a lot of these places into Asia are not currently served, but we are going to be the only airline that can take someone all the way from Nice to Hanoi, for example.”

Etihad had previously announced new direct services to Al Ameain, Warsaw and Prague, with flights set to begin in June and July. The airline will also start flying directly from Abu Dhabi to Nairobi, Kenya from December 15.

Passengers will pay more

By the end of 2025, Etihad plans to have more than 90 destinations in 50 countries across the world. This will be made possible with the arrival of new jets. Etihad expects to be operating more than 110 aircraft, up from 71 in 2022, including brand new A321LRs, Boeing 787s and Airbus A350s. The airline also plans to reinstate two of its A380 super jumbos early next year.

Etihad is expanding its fleet at Zayed International Airport in Abu Dhabi. Photo: Etihad Airways
Etihad is expanding its fleet at Zayed International Airport in Abu Dhabi. Photo: Etihad Airways

But passengers hoping to see a respite in airfares next year will probably be disappointed, according to Mr Neves, who points to aircraft supply chain issues faced by the aviation industry.

“In the end, airfares are about supply and demand and if planes are not delivered, demand is going to grow and fares are going to go up,” he explained. “I hope they deliver planes, because we're in the business of selling tickets and we want to sell more and cheaper tickets, but the reality is our load factors now are extraordinary. And Abu Dhabi is doing extraordinary well, so demand is really, really strong. So for fares to be controlled there is an urgent need for Boeing and Airbus to deliver planes.”

How Tesla’s price correction has hit fund managers

Investing in disruptive technology can be a bumpy ride, as investors in Tesla were reminded on Friday, when its stock dropped 7.5 per cent in early trading to $575.

It recovered slightly but still ended the week 15 per cent lower and is down a third from its all-time high of $883 on January 26. The electric car maker’s market cap fell from $834 billion to about $567bn in that time, a drop of an astonishing $267bn, and a blow for those who bought Tesla stock late.

The collapse also hit fund managers that have gone big on Tesla, notably the UK-based Scottish Mortgage Investment Trust and Cathie Wood’s ARK Innovation ETF.

Tesla is the top holding in both funds, making up a hefty 10 per cent of total assets under management. Both funds have fallen by a quarter in the past month.

Matt Weller, global head of market research at GAIN Capital, recently warned that Tesla founder Elon Musk had “flown a bit too close to the sun”, after getting carried away by investing $1.5bn of the company’s money in Bitcoin.

He also predicted Tesla’s sales could struggle as traditional auto manufacturers ramp up electric car production, destroying its first mover advantage.

AJ Bell’s Russ Mould warns that many investors buy tech stocks when earnings forecasts are rising, almost regardless of valuation. “When it works, it really works. But when it goes wrong, elevated valuations leave little or no downside protection.”

A Tesla correction was probably baked in after last year’s astonishing share price surge, and many investors will see this as an opportunity to load up at a reduced price.

Dramatic swings are to be expected when investing in disruptive technology, as Ms Wood at ARK makes clear.

Every week, she sends subscribers a commentary listing “stocks in our strategies that have appreciated or dropped more than 15 per cent in a day” during the week.

Her latest commentary, issued on Friday, showed seven stocks displaying extreme volatility, led by ExOne, a leader in binder jetting 3D printing technology. It jumped 24 per cent, boosted by news that fellow 3D printing specialist Stratasys had beaten fourth-quarter revenues and earnings expectations, seen as good news for the sector.

By contrast, computational drug and material discovery company Schrödinger fell 27 per cent after quarterly and full-year results showed its core software sales and drug development pipeline slowing.

Despite that setback, Ms Wood remains positive, arguing that its “medicinal chemistry platform offers a powerful and unique view into chemical space”.

In her weekly video view, she remains bullish, stating that: “We are on the right side of change, and disruptive innovation is going to deliver exponential growth trajectories for many of our companies, in fact, most of them.”

Ms Wood remains committed to Tesla as she expects global electric car sales to compound at an average annual rate of 82 per cent for the next five years.

She said these are so “enormous that some people find them unbelievable”, and argues that this scepticism, especially among institutional investors, “festers” and creates a great opportunity for ARK.

Only you can decide whether you are a believer or a festering sceptic. If it’s the former, then buckle up.

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Updated: November 26, 2024, 6:20 AM