Etihad CEO Says Airline Discounts Tickets Despite 70% Fuel Jump
Etihad Airways CEO Antonoaldo Neves said the carrier is discounting tickets by keeping fares stable despite a 70% jump in fuel costs, and is working to secure delivery dates for new aircraft from Boeing and Airbus.
Key Numbers
Etihad Airways CEO Antonoaldo Neves told Bloomberg's Guy Johnson at the International Air Transport Association (IATA) conference in Rio de Janeiro that the carrier is discounting tickets by keeping fares at a stable level despite the 70% jump in fuel costs. Neves also discussed securing delivery dates for new aircraft from Boeing (BA) and Airbus SE.
Details
Neves explained that the current pricing strategy aims to maintain competitive fares and attract travelers despite significant cost pressures. He noted that the airline has absorbed part of the fuel cost increase through operational efficiency improvements.
Context
The announcement comes amid a global surge in jet fuel prices, squeezing airline profit margins. Etihad Airways, based in Abu Dhabi, is one of the largest carriers in the Middle East.
What It Means for Investors
Keeping fares stable despite rising costs raises questions about the airline's ability to maintain profitability. Securing delivery dates for new Boeing and Airbus aircraft will be critical for future expansion plans.
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