ABU DHABI— Etihad Airways (EY), the national carrier of the United Arab Emirates (UAE), has cut fares by up to 50% on long-haul routes from London Heathrow (LHR), triggering a price battle among the Gulf’s big three airlines. The move comes as the ongoing Middle East conflict has sharply reduced passenger demand across the region.
The Abu Dhabi-based carrier now offers some of its lowest-ever fares from the UK to destinations including Sydney (SYD), Singapore (SIN), Hong Kong (HKG), the Maldives (MLE), Bangkok (BKK), and Tokyo, with some tickets priced at just one-sixth of equivalent British Airways (BA) fares.
Etihad Cuts Fares by Up to 50%
Etihad’s sale targets return travel before July 1, 2026. Economy-class return tickets from London to Sydney (SYD), via Abu Dhabi (AUH), start at just £688 for May departures with June returns. Business-class returns on the same route are available from £2,465, including all taxes.
In stark contrast, British Airways (BA) prices the same London-to-Sydney route at £1,850 in economy and £10,435 in business class, via Singapore (SIN). The gap is equally wide on other routes.
Etihad’s business-class return to Singapore (SIN) is priced at £1,521, while BA charges £8,485 for the same cabin on the same routing.
Fares for passengers departing from continental European cities run approximately 10% cheaper than those from Heathrow (LHR), which carries the highest airline charges in Europe — costs that airlines pass directly to customers, The Times reported.
Etihad’s Strategy: Fill Planes, Win New Passengers
Etihad’s leadership is betting that steep discounts will drive bookings through the end of June, with the expectation that regional tensions will ease by then. The airline’s website shows fares rising again from July onward.
An Etihad executive, speaking privately, said the airline wants to return to 100% cabin load factors across all classes as quickly as possible, citing the discounts as the primary lever to achieve that. The airline also hopes to convert first-time bargain hunters into loyal, repeat flyers.
To add further value, Etihad is offering eligible passengers two complimentary hotel nights in Abu Dhabi (AUH) to turn their layover into a short break. However, executives acknowledge that uptake will be low while the UK Foreign Office advises against all but essential travel to the UAE.
The airline is also highlighting its new hub, Zayed International Airport (AUH), which frequent travellers widely regard as among the best-designed, easiest to navigate, and most luxurious airports in the world.
Rivals Hold Firm — For Now
Emirates (EK), the Dubai-based carrier and the world’s largest international airline by passenger miles flown, and Qatar Airways (QR) have not matched Etihad’s price cuts. Both carriers are larger and better positioned to absorb the financial impact of reduced demand.
Currently, both are offering greater booking flexibility, including one complimentary date change, rather than competing on price.
A senior executive at a rival Gulf carrier, speaking privately, called Etihad’s strategy “a crazy move that looks weak and cheapens its brand,” arguing that passengers drawn in by low fares would return to their preferred airlines once prices normalised.
However, aviation analyst Henry Harteveldt of Atmosphere Research disagrees. He described the move as consistent with historical precedent, noting that US carriers adopted similar deep-discount strategies following the September 11 attacks to rebuild passenger confidence.
Harteveldt added that he expects Etihad’s competitors to respond, given that they also have empty seats and cannot afford to lose passengers to a discounted rival.
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