'Capacity constraints, not demand, capping India growth'

Etihad Airways considers India as critical to its long-term strategy, but feels that capacity constraints have stymied its growth potential in the country despite strong demand, high load factors and rising yields.

- ARIK DE, CHIEF REVENUE & COMMERCIAL OFFICER, ETIHAD AIRWAYS

The biggest constraint is policy (bilateral seat cap), not market appetite, says Etihad Airways Chief Revenue and Commercial Officer Arik De. In an interview with Akbar Merchant, he talks about why airfares continue to climb sharply and what easing capacity constraints could mean for traffic, revenue and long-term connectivity. Excerpts:

Etihad carried 22.4 million passengers globally in 2025, up 21% year-on-year. What role did India play in this growth?

In 2025, we carried around 3.8-4 million passengers to and from India, making it one of our top five markets globally. Growth from India is running at 10-15% annually, but that growth is largely capacity-led. Demand is far stronger than what current seat entitlements allow us to serve.

How do you see India’s position in Etihad’s global network evolving?