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Passenger levels strong in recent weeks
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Europeans could leverage strong euro to travel to Gulf
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CEO Neves says airline can mitigate any eventual impacts
(Adds details on aircraft delivery, orders and background)
By Federico Maccioni and Jana Choukeir
DUBAI, April 28 (Reuters) - Abu Dhabi's Etihad Airways
is not seeing any effects from the turmoil caused by U.S.
President Donald Trump's tariff policies, its CEO Antonoaldo
Neves told Reuters on Monday, while adding it was too early to
fully gauge the impact of the levies.
Trump's announcement of sweeping tariffs on dozens of U.S.
trading partners this month - and then his pausing of most of
them - created widespread market uncertainty and raised fears of
a global economic downturn.
Neves said Etihad had recorded strong seat occupancy levels
in recent weeks despite the trade tensions, and that the
volatility could even create opportunities in some instances.
He expects more Europeans, for example, to take advantage of
the euro's recent gains against the dollar and the Gulf region's
dollar-pegged currencies to travel.
"It means that the euro now is stronger when you compare it
to the Middle Eastern currency ... So I expect to see more
Europeans coming," Neves said on the sidelines of the Arabian
Travel Market fair in Dubai.
Neves' comments echo Gulf airline Riyadh Air, which said
earlier on Monday that global economic uncertainty had not
reduced demand for travel to the Saudi capital.
If tariff-induced turmoil does impact passenger numbers,
Neves said Etihad, which has a fleet of around 100 aircraft, had
a contingency plan and could rely on its flexibility.
"About 60% of our planes are unencumbered, so they're all
fully paid for. If I get a crisis one day, I park planes ... and
save 75% of the cost," he said.
At a press conference earlier on Monday, Neves said Etihad
planned to add 20 to 22 new planes this year, as it aims to
expand its fleet to more than 170 planes by 2030 and boost Abu
Dhabi's economic diversification strategy.
The UAE's capital is investing heavily in sectors like
tourism to cut its dependence on oil revenues, and in 2023 it
launched a new terminal at Zayed International Airport that
tripled the hub's annual capacity to 45 million passengers.
Etihad, which is owned by Abu Dhabi's $225 billion wealth
fund ADQ, has been through a multi-year restructuring and
management shake-up, but has expanded under Neves.
He said that 10 of this year's new aircraft would be Airbus
A321LRs, which the carrier launched on Monday and will start
operating in August. The remainder include six Airbus A350s and
four Boeing ( BA ) 787s.
Airlines in recent years have been plagued by delayed plane
deliveries as manufacturers like Boeing ( BA ) and Airbus
struggled with the pace of orders in a post-pandemic
travel boom, among other issues.
Neves, who declined to give specifics on the order pipeline,
said he was not happy with the delays but that they were not
compromising the airline's growth plans.
Etihad is always in talks with planemakers, he said, when
asked whether the carrier could be interested in acquiring some
of the dozens of planes that Boeing ( BA ) is looking to resell after
they were locked out of China due to tariffs.