Etihad Airways will continue to operate five daily return flights between Abu Dhabi and London Heathrow for the rest of July, despite requests from Britain’s busiest airport for operators to cut capacity to ease congestion.
“We will be operating all five of our daily flights to and from London at full capacity through to the end of July and are awaiting further information on the airport's longer-term plans for August,” Etihad said in a statement.
“Etihad is working closely with airport stakeholders at Heathrow to minimise any disruption to our operation and our guests over the summer holidays.
“Considering the situation at Heathrow, we have made some minor schedule changes to ensure the integrity of our operation and to avoid a larger disruption to our guests. Our priority over the coming months is to maintain the resilience of our operation and to protect the travel plans of our customers flying to and from Heathrow.”
On Thursday, an Etihad flight from London to Abu Dhabi set off more than three hours earlier than scheduled "to avoid peak congestion".
Heathrow asked airlines this week to stop selling some tickets for summer flights, limiting the total number of daily passengers flying from the hub to 100,000. The airport has been marred by operational issues in recent weeks resulting in flight cancellations, lengthy check-in queues for passengers and problems with baggage handling. Heathrow and other European airports are struggling to cope with surging demand and staff shortages following huge layoffs during the pandemic.
A Heathrow representative did not directly address the Etihad announcement; instead, they repeated remarks made earlier this week about how the airport was forced to impose cuts after failing to find a solution with airlines following months of consultations.
The demands were initially rejected by major airlines including Virgin Atlantic, Emirates and British Airways, which said they would continue their services as scheduled. In a statement, Emirates accused Heathrow bosses of showing "blatant disregard for consumers" by attempting to force it to "deny seats to tens of thousands of travellers".
It said Heathrow's demands were "unreasonable and unacceptable" and described the airport management as "cavalier about travellers and airline customers".
Emirates announced on Friday it will continue to fly Heathrow but has agreed not to sell additional tickets until mid-August.
In a joint statement, Emirates president Tim Clark and Heathrow chief executive John Holland-Kaye said both companies had held a “constructive meeting” on Friday in which they agreed to keep “demand and capacity in balance”.
“Emirates agreed the airline was ready and willing to work with the airport to remediate the situation over the next two weeks, to keep demand and capacity in balance and provide passengers with a smooth and reliable journey through Heathrow this summer,” the statement said.
“Emirates has capped further sales on its flights out of Heathrow until mid-August to assist Heathrow in its resource ramp-up, and is working to adjust capacity.
“In the meantime, Emirates flights from Heathrow [will] operate as scheduled and ticketed passengers may travel as booked.”
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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