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Etihad CMO: India Demand Outstrips Flight Capacity
31 Jan
Summary
- India is a top five market for Etihad, with strong annual growth potential.
- Seat capacity constraints, not demand, limit Etihad's India expansion.
- Etihad notes rising airfares from India due to constrained capacity.
Etihad Airways experienced a record-breaking year in 2025, carrying 22.4 million passengers globally, a 21% increase year-on-year. India played a significant role, contributing approximately 3.8-4 million passengers and ranking as one of Etihad's top five markets. The airline sees India as strategically critical, noting its strong economic fundamentals and rapidly growing demand.
However, Etihad's Chief Revenue and Commercial Officer, Arik De, expressed concerns about capacity constraints between India and Abu Dhabi. He stated that current bilateral seat entitlements have been largely maximized, preventing the airline from fully capitalizing on India's robust demand. This policy limitation, he emphasized, is the primary impediment to growth, rather than a lack of market appetite.
The constrained capacity is leading to increased airfares, with yields from India ranking among Etihad's highest. Despite this, the airline is investing heavily in its Indian network, planning to feature flat-bed business class on all India routes within 18-24 months. An Oxford Economics study estimates that these bilateral limits could cost India millions of passengers and billions in revenue over five years.
