Background The emirate of Abu Dhabi was a joint owner of
Gulf Air along with Bahrain, Qatar, and the Sultanate of Oman. Zayed International Airport was one of Gulf Air's bases and hubs from the 1970s until 2005, when the UAE withdrew from the airline. Gulf Air would remain as a two-state carrier until Oman's exit in 2007 to focus on
Oman Air and today, Gulf Air is solely owned by Bahrain. wearing the first livery (with the older UAE coat of arms)
Name Etihad means "union" or "unity" in
Arabic, and represents the unity of the seven emirates of the
United Arab Emirates (Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah).
Foundation In July 2003, future UAE president Sheikh
Khalifa bin Zayed Al Nahyan, who wanted an airline for Abu Dhabi, issued an
Amiri decree that established Etihad Airways as a national airline of the
United Arab Emirates. Sheikh
Ahmed bin Saif Al Nahyan founded the airline and utilised
AED500 million of start-up capital. Services were launched with a ceremonial flight to
Al Ain on 5 November 2003. On 12 November 2003, Etihad commenced commercial operations by launching services to
Beirut, Lebanon. In June 2004, the airline placed a US$8 billion aircraft order for six
Boeing 777-200 and 24 Airbus aircraft, including 10
Airbus A380s. Etihad's first A380 was delivered in December 2014. In June 2008, at the
Farnborough Airshow, the airline announced an order for 35
Boeing 787s and 10 777s, options for 25 787s and 10 777s, and purchase rights for 10 787s and 5 777s. Etihad reported its first full-year net profit in 2011, of US$14 million, in line with the strategic plan announced by CEO
James Hogan in 2006.
Equity Alliance In December 2011, Etihad announced it had acquired a 29.21% stake in
Air Berlin, Europe's sixth-largest airline, and Hogan was appointed Vice Chairman. It followed this up with minority stakes in other airlines—
Air Seychelles (40%),
Aer Lingus (2.987%),
Virgin Australia (10%). On 1 August 2013, the president of the company, Hogan, signed a deal with
Aleksandar Vučić, the First Deputy Prime Minister of Serbia, in Belgrade, granting Etihad a 49% stake in the Serbian national carrier
Jat Airways. The Serbian government retained 51% of the shares, with the company was rebranded as
Air Serbia. In September 2012, the Indian government announced that foreign airlines could hold up to 49% stake in Indian carriers. On 24 April 2013, Jet Airways announced it was ready to sell a 24% stake to Etihad for US$379 million. The deal was completed on 12 November 2013. At the 2013 Dubai Airshow, Etihad announced it was acquiring a 33.3% stake in the Swiss carrier
Darwin Airline, which was rebranded as Etihad Regional in March 2014. Etihad sold its stake in Darwin in 2017. On 1 August 2014, Etihad agreed to acquire a 49% stake in the Italian flag carrier
Alitalia for an estimated €560 million. The deal was finalised on 8 August 2014. On 1 January 2015, Alitalia-CAI formally transferred its operations to Alitalia-SAI, a new entity owned 49% by Etihad and 51% by the Alitalia-CAI shareholders. The airline established its airline alliance, Etihad Airways Partners, in October 2015. It ceased operations in 2018 after several of its members fell into financial difficulties. Etihad held minority investments in the participating airlines and previously had a stake in
Virgin Australia until its insolvency in April 2020 with no return on investment. In May 2016, the management structure was reshuffled, as Hogan became CEO of the airline's parent company, Etihad Aviation Group. Peter Baumgartner, formerly the airline's Chief Commercial Officer, became chief executive officer of the airline, reporting to Hogan. In December 2016
Handelsblatt Global reported that Hogan was expected to be dismissed after a "failed spree of acquisitions in Europe." On 24 January 2017, the Etihad Aviation Group Board of Directors announced that Hogan (along with Group CFO James Rigney) would be stepping down "in the second half of 2017". Peter Baumgartner, (former CEO of the airline), became the acting CEO as it faced mounting losses from its investments in Air Berlin and Alitalia. On 2 May 2017, Alitalia filed for bankruptcy. Hogan and Rigney left Etihad later that month. On 27 July, Etihad reported a loss of US$1.873 billion for 2016. On 15 August, Air Berlin filed for bankruptcy after Etihad withdrew its financial support. As an interim measure, the board appointed Ray Gammell as CEO (previously Chief People and Performance Officer) while searching for a permanent replacement. On 9 January 2018, Etihad Airways appointed Mark Powers as Group CFO, replacing interim Group CFO Ricky Thirion. On 2 July 2017, the
United States Department of Homeland Security lifted the electronics ban on Etihad Airways after the airline enhanced its passenger screening processes. In June 2018, Etihad reported a net loss of US$1.52 billion for 2017. In February 2019, Etihad announced large order cancellations for both
Airbus and
Boeing aircraft. The airline terminated contracts for all 42 Airbus A350-900s, two A350-1000s and 19 of 24 ordered
Boeing 777X. On 1 May 2021, it was announced Etihad Airways sold its 40% stake in
Air Seychelles back to the Government of Seychelles. On 13 May 2023, the Serbian Government announced it had finished acquiring 100% equity in
Air Serbia, after several years of buying back stakes from Etihad.
Effect of COVID-19 In May 2020, shortly after
Air France retired its entire
Airbus A380 fleet due to the
COVID-19 pandemic, there were rumors that Etihad Airways was considering canceling all its remaining
Airbus A350 orders and retiring its entire Airbus A380 fleet due to more financial losses caused by the COVID-19 pandemic. Etihad's CEO
Tony Douglas said that Etihad's A380 fleet was very likely not to fly again in passenger service, and therefore likely to be withdrawn after only seven years in service. This move would make Etihad the third Airbus A380 operator to retire its Airbus A380 fleet, following
Air France-KLM and
Hi Fly Malta. However, by 26 May 2020, Etihad confirmed that the airline will not cancel its remaining Airbus A350 orders and plans to proceed with them. The airline also confirmed that it had no plans to ditch its Airbus A380 fleet into early retirement, unlike Air France, despite the COVID-19 pandemic. However, as of October 2020, some sources stated that the Etihad Airbus A380 still had a potential possibility of early retirement due to the aircraft market changes and demand caused by the COVID-19 pandemic as Douglas referred to the Airbus A380 as a heavily inefficient handicapped behemoth by two engines too many. Douglas also said that smaller long-range twin-jet aircraft such as the Boeing 777X, 787, and Airbus A350 can do the job far more efficiently and sustainably than that of the A380. In February 2021, Etihad Airways
vaccinated all its operating pilots and cabin crew against COVID-19, the first airline to vaccinate all its operating pilots and cabin crew. Since most of Etihad's flights were grounded between March and June 2020, the airline's passenger traffic dropped by 76% to 4.2 million in 2020. Throughout 2020, due to the COVID-19 pandemic, Etihad Airways laid off over 1,000 cabin crew and pilots. Etihad had reported significant losses even before the pandemic; since 2016, it lost over $5.62 billion and in 2019 losses amounted to $870 million. The airline's full-year losses amounted to $1.7 billion in 2020, and $476 million in 2021.
Return to profitability In 2021,
Etihad Airways introduced its
sonic identity, created in partnership with the agency
Sixième Son, becoming one of the first airlines in the Middle East to deploy a comprehensive audio branding system across its touchpoints. Inspired by the traditional Al Sadu weaving technique, the sonic identity blends Emirati instruments with contemporary textures and is deployed across cabins, lounges, customer interactions and brand communications. In July 2022, Etihad announced a record-breaking first-half profitability of $296 million. This was achieved due to the increased passenger travel demand. Etihad carried 3 million more passengers in the first half of 2022, compared to the first half of 2021. In October 2022 Etihad Airways was transferred ownership over to Abu Dhabi sovereign wealth fund
ADQ. Etihad,
Wizz Air Abu Dhabi,
Abu Dhabi Airports, Etihad Holidays, and more were all brought into common ownership. Although the airline had grounded its fleet of 10
A380-800 aircraft with no initial plans to redeploy the aircraft, it was decided that they would return to service. In 2023, Etihad redeployed four of their 10 jumbo jets onto their
London–Heathrow service, with later decisions that an additional A380 would return to the fleet. The airline later announced the redeployment of their A380 to their
New York–JFK route in April 2024 as well as to
Paris–Charles de Gaulle from November 2024,
Singapore from February 2025, as well as
Toronto–Pearson from June 2025. Etihad continued to operate to
Tel Aviv during the
Gaza war, and has made it their busiest route in December 2025, with six daily flights, the first Etihad route to have this frequency. ==Corporate affairs==