United Arab Emirates – Etihad Airways, the national carrier of the UAE, is on track to surpass its pre-Iran war capacity by 15 June 2026 without resorting to fare reductions, with demand on key transit routes recovering strongly despite the ongoing regional conflict that grounded its aircraft from 28 February.

The airline is currently operating at 90% of its pre-war available seat kilometres (ASK) and load factors have returned to 84%, with average fares holding at pre-war levels despite jet fuel costs that have doubled since the conflict began.
Recovery is being driven by strong demand from the US, India, and Southeast Asia, which is offsetting a decline in corporate travel; Abu Dhabi transit demand between Europe and Asia is sufficiently robust that Etihad is deploying two Airbus A380s daily on the Paris route from July.
CEO Antonoaldo Neves dismissed industry expectations of post-ceasefire fare cuts as unfounded, stating prices were unlikely to decline; he confirmed the airline continued operating throughout the conflict via open airspace corridors based on demand levels rather than regulatory requirement.
The airline had been targeting a 10% operating margin for 2026, up from 8% in 2025, but the conflict impact across March, April, and May will prevent it from reaching that goal; Neves said the airline would not be back on track until August.
Etihad, owned by Abu Dhabi sovereign wealth fund L'imad, has confirmed it does not require additional financing this year.

Source: Etihad Airways

Gulf National Carrier Plans Full Capacity Recovery in June 2026 Following Regional Conflict Disruption

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