March 6 (Reuters) - Abu Dhabi's Etihad Airways has

returned to profit and is improving its transparency, governance

and balance sheet to be ready for an initial public offering

should its sovereign wealth fund owner decide to list it, CEO

Antonoaldo Neves said.

The United Arab Emirates' national carrier on Wednesday

posted net profits for 2022 and 2023 after a run of significant

losses since 2016.

Etihad is owned by Abu Dhabi wealth fund ADQ, which has

listed several holdings since 2022 as part of a broader strategy

to diversify the oil-rich emirate's economy, deepen capital

markets and spur investment.

Bloomberg on Friday reported ADQ, which took over Etihad in

October 2022 and appointed Neves as its CEO, was considering an

IPO for the airline as early as this year.

"We are working very hard so that whenever is the proper

time to do an IPO, we are going to be ready," Neves told Reuters

in an interview. The airline industry veteran led Brazilian

carrier Azul ( AZUL ) through an IPO in 2017.

Neves said it was no secret that ADQ's objective is to list

portfolio companies, but that any IPO would be a decision for

ADQ, not Etihad, to make. ADQ declined to comment.

In a sign of change, Etihad will publish a 2023 annual

report by mid-April for the first time, including details of

pandemic-related government support, Neves said.

Etihad, which approved a seven-year growth plan a year ago

to turn around its streak of losses, announced a 2023 net profit

of 525 million dirhams ($143 million) and a previously

unreported 2022 net profit of 92 million dirhams.

Neves said Etihad was increasing efficiency to drive

profits, including scrapping unprofitable routes and returning

grounded aircraft to service.

Passenger numbers rose 40% year-on-year in 2023 to 14

million and Etihad's "Journey 2030" plan aims to triple

passengers and double its fleet by 2030.

It is a return to growth after about six years of downsizing

following a failed bid to compete with Gulf rivals Emirates and

Qatar Airways, which are not publicly listed.

Etihad had bought stakes in foreign airlines including Air

Berlin, Alitalia, India's Jet Airways and Virgin Australia,

which all went bankrupt.

Etihad no longer holds those stakes and does not intend to

invest in other carriers, Neves said.

Etihad is instead concentrating on connecting Southeast

Asia, the Gulf and the Indian subcontinent to Europe and the

U.S. East Coast with frequent flights, rather than ultra-long

haul routes, he said.

"We are not obsessing anymore just to do what our

competition is doing and copying them," he said.

Etihad operates 80 Boeing ( BA ) and Airbus

passenger jets and five freighters.

($1 = 3.6723 UAE dirham)