Etihad Airways, the national airline of the United Arab Emirates, has issued a strong denial of claims circulating on social media platforms that the airline is planning an initial public offering (IPO) on the Dubai Financial Market.
In a statement issued on Thursday, Etihad categorically stated that the posts, which misleadingly promote a mechanism for investing in the airline and misuse its branding, are entirely false and have no affiliation with the carrier.
"The airline has clarified in the strongest terms that any conjecture regarding a potential share listing (IPO/initial public offering) is entirely speculative," Etihad emphasised. The airline has reported these deceptive posts to relevant authorities in the UAE and social media providers.
Simultaneously, the Securities and Commodities Authority (SCA), the UAE's federal financial regulatory agency, issued a warning to residents against engaging with bogus investment entities. The SCA highlighted the prevalence of fake advertisements on social media platforms, encouraging individuals to subscribe to Etihad Airways shares.
"Do not deal with these fictitious advertisements," the SCA and Etihad Airways urged investors in an advisory. The SCA reminded residents to rely solely on official sources for information and to thoroughly verify the identity of any entity before entering into agreements or conducting financial transactions.
While Etihad has denied current IPO plans, CEO Antonoaldo Neves alluded to the possibility of a future listing earlier this year. In March, Neves noted that "airlines going public isn't uncommon" and that an IPO could provide the airline with access to capital and public markets. His statement followed speculation regarding Etihad's potential listing after a strong performance in 2023, with a positive outlook projected for 2024.
Last year, Etihad reported double-digit (11 per cent) total revenue growth, reaching Dh20.3 billion, an operating result of Dh1.4 billion, and a net profit of Dh525 million. Passenger revenue reached Dh16.7 billion.
In the first quarter of 2024, Etihad Airways recorded a profit after tax of Dh526 million, a significant increase of over 791 per cent compared to Dh59 million in the first quarter of 2023. Total revenue rose by Dh987 million, driven by an increase in network capacity and passenger numbers.
The airline continued its network expansion in June, launching eight new destinations, including Bali, Jaipur, Al Qassim, and seasonal destinations Nice, Antalya, Mykonos, Santorini, and Malaga.
