Etihad Airways is “working hard” to ensure the company is ready for a potential IPO, CEO Antonoaldo Neves has said.

Speaking at the Global Aerospace Summit in Abu Dhabi on Wednesday, Neves said that no decision has been made on the IPO, with the decision to be taken by its owner, sovereign wealth fund ADQ.

ADQ, which owns the Abu Dhabi Exchange, is also a 20% shareholder in IPO candidate Lulu Group having paid just over US$1bn for its stake in 2020.

While Lulu is said to be on course for a dual listing this year on Saudi Arabia's Tadawul, bankers on and away from Etihad have suggested the deal is likely to slip into 2025.

Citigroup, HSBC and First Abu Dhabi Bank were linked to the deal earlier this year, with subsequent reports of Abu Dhabi Commercial Bank, Bank of America, BNP Paribas and Morgan Stanley being added as joint bookrunners.

Alongside Lulu and potential offers such as ADNH Catering and luxury hotel group Five, the Etihad IPO represents a diversification of the Abu Dhabi Exchange, which in recent years has been dominated by privatisations and industrial sectors such as oil and gas through listings from the extensive stable of Adnoc subsidiaries.

Commenting on Wednesday on Etihad’s performance, Neves said it would spend more than US$7bn by 2030 to refurbish its fleet with funding sourced from cashflow without the need to raise capital.

Etihad's first-half profit rose 48% to Dh851m (US$232m) off revenue of Dh11.7bn, with passenger numbers up 38%.

In July, the airline's credit rating was upgraded to A+ by Fitch.

Source: IFR