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Etihad slashes fares 50% amid war-hit demand

Source: thetimes.com

TL;DR

Etihad Airways slashes long-haul fares by 50% for May and June travel from London due to Middle East war curbing demand.
London-Sydney economy return via Abu Dhabi now £688, one-sixth of British Airways' £1,850 price.
Move risks brand image but aims to fill planes fully once conflict eases, sparking Gulf carrier price battle.

The story at a glance

Etihad Airways, the UAE state-owned carrier based in Abu Dhabi, has cut fares by 50% on routes to Sydney, Singapore, Hong Kong, Maldives, Bangkok and Tokyo. The discounts respond to tumbling demand from the war between the US, Israel and Iran. This is reported now as bookings collapse ahead of the May-June period, with prices rising again in July.[[1]](https://www.thetimes.com/business/companies-markets/article/etihad-airways-cuts-fares-by-50-percent-as-war-hits-demand-for-travel-jzch9lmj6)

Key points

Economy return London-Sydney: £688 (Etihad) vs £1,850 (BA via Singapore); business £2,465 vs £10,435.
London-Singapore business: £1,521 (Etihad) vs £8,485 (BA).
Fares cheaper than pandemic levels on some routes; 10% lower from continental Europe due to Heathrow charges.
Includes free two-night Abu Dhabi hotel stay, despite Foreign Office warning against non-essential UAE travel.
Etihad targets 100% capacity across cabins post-conflict and first-time flyers.
No matching cuts yet from Emirates or Qatar Airways, which offer free date changes instead.
Rivals privately call it desperate; aviation analyst sees it as standard response like post-9/11 discounts.[[1]](https://www.thetimes.com/business/companies-markets/article/etihad-airways-cuts-fares-by-50-percent-as-war-hits-demand-for-travel-jzch9lmj6)

Details and context

The war has slashed regional air travel demand, with Gulf carriers facing empty seats amid airport closures and flight cuts. Etihad flies via its new Zayed International hub, billed as quick and luxurious. The sale bets on conflict easing soon to lock in passengers before prices rebound.

A rival executive questions long-term loyalty from bargain hunters. Analyst Henry Harteveldt expects competitors to follow as empty seats mount across the industry.

Key quotes

Etihad executive: “As soon as travel picks up, we want to be back to flying planes 100 per cent full in all cabins, as we were before the conflict. These prices will help.”[[1]](https://www.thetimes.com/business/companies-markets/article/etihad-airways-cuts-fares-by-50-percent-as-war-hits-demand-for-travel-jzch9lmj6)

Rival Gulf executive: “A crazy move that looks weak and cheapens its brand. Sure, people in the UK and Europe might buy a ticket once while it’s cheap, but when prices rise again, they’ll go back to the airlines they used to choose before.”[[1]](https://www.thetimes.com/business/companies-markets/article/etihad-airways-cuts-fares-by-50-percent-as-war-hits-demand-for-travel-jzch9lmj6)

Henry Harteveldt: “Not unusual … After 9/11, US airlines offered deep discounts to tempt passengers back. I call it ‘the price of courage’.”[[1]](https://www.thetimes.com/business/companies-markets/article/etihad-airways-cuts-fares-by-50-percent-as-war-hits-demand-for-travel-jzch9lmj6)

Why it matters

The Middle East war disrupts global routes and demand, pressuring Gulf airlines with empty planes and high fuel costs. Travellers gain cheap long-haul options now, but UAE risks remain due to travel warnings; investors watch for fare wars eroding profits. Monitor rival responses and conflict updates, as sustained tensions could end the discounts early.