Fitch affirms Etihad Airways at 'AA-' with stable outlook

Fitch Ratings affirmed the long-term credit rating of Etihad Airways at 'AA–' with a 'stable' outlook.

This reflects the strength of the airline’s standalone credit profile and strong linkages with the Abu Dhabi government, as the national carrier continues to execute its growth strategy through 2030.

Fitch maintained its assessment of Etihad’s standalone credit profile, and rated the airline’s likelihood of receiving government support as strong. The rating is just one notch below Abu Dhabi’s 'AA' rating, which also has a stable outlook.

Fitch noted that the easing of airspace restrictions following the temporary peace agreement between the US and Iran contributed to a rapid recovery in passenger numbers. This recovery continued in Q2 2026, bringing Etihad’s operating capacity by end-June to 12% above its pre-year level.

Management expects the carrier’s capacity for the summer season to be about 10%-15% higher than the previous year, reflecting continued recovery momentum and growth in operations for the national airline.

Strong growth and ambitious plan to 2030

Fitch noted that Etihad continues to execute its 2030 strategic plan, targeting a 13% compound annual growth in available seat kilometers through the end of the decade.

Fleet expansion

The strategy supports a significant fleet expansion, with plans to grow to 200 aircraft by 2030, up from 127 aircraft at the end of 2025.

Investments will focus on new, long-haul aircraft to support both network expansion and operational efficiency. The airline is also managing liquidity by deferring some pre-delivery payments for aircraft scheduled in 2026, which helps deliver its strategy and maintain cash reserves.

Record performance in 2025

Fitch praised Etihad’s strong 2025 performance, which exceeded its forecasts, as revenue climbed 21% and earnings before interest and tax jumped 37%.

The agency attributed this to robust passenger growth, higher cargo revenue, and improved seat load factors and yields.

Etihad held about AED 3.3 billion in available cash at end-June 2026, along with AED 7.3 billion in revolving credit facilities.

Additionally, liquidity is supported by a AED 3.2 billion shareholder cash pooling agreement, available on demand.

The airline’s financial position is also underpinned by unencumbered assets representing around 66% of the fleet value. Fitch expects fleet expansion to be funded by a mix of operating cash flows and lease agreements.