Etihad Airways is focusing on premium travel and customer segmentation to boost its business in India, one of its top three global markets, while operating at full capacity under a bilateral seat agreement with the country.

The Abu Dhabi-based airline has been upgrading its services with new aircraft and enhanced cabin experiences to attract high-value travellers. Since relaunching flights to Kolkata in March 2023, Etihad increased its weekly frequency from four to eight flights by 2025. Across India, the airline now operates 185 flights a week to 11 cities.

“We fly all the seats that the bilateral agreement allows us,” said Javier Alija, Etihad Airways Vice President for Global Sales and Distribution. The agreement caps 50,000 weekly seats for Abu Dhabi-based carriers, shared between Etihad and Air Arabia Abu Dhabi. Until the agreement changes, the airline cannot add more frequencies or destinations.

To overcome these capacity constraints, Etihad is building partnerships, including a tie-up with Akasa Air, connecting four Indian cities to Abu Dhabi. The airline is also enhancing the passenger experience for long-haul travellers, especially to the US, with Abu Dhabi’s new terminal and US Customs and Border Protection (CBP) pre-clearance. This allows passengers to arrive in the US as domestic travellers, saving time at immigration.

Kolkata is the first Indian city to receive Etihad’s new A321 LR aircraft, featuring a redesigned cabin with just 160 seats, two first-class suites, 14 business, and 144 economy seats, offering a widebody-like experience in a narrow-body aircraft. “This reflects Kolkata’s strong premium travel potential,” Alija said.

Etihad’s focus on yield optimisation and operational efficiency has helped the airline achieve record financial results. For the current year, it expects 21–22% growth in seat capacity, 22–23% increase in revenue, and a 30% rise in absolute profit, supported by expansions in other markets. The airline plans to launch 13 new international routes by year-end, aiming to serve nearly 90 destinations worldwide.

Alija added, “Even if our frequencies and destinations remain static, these customer-focused and operational efforts ensure Etihad continues to be the preferred airline for Indian travellers. We are very conscious that our rapid growth should not compromise the financial gains we have achieved.”