This article is based on an official press release from Etihad Airways and includes analysis based on industry data.

McLaren Racing and Etihad Airways Announce Strategic Partnership for 2026 Season

McLaren Racing has officially confirmed a new multi-year agreement with Etihad Airways, designating the United Arab Emirates’ national carrier as its Official Airline Partner. The collaboration is set to commence with the 2026 season, covering both the McLaren Formula 1 Team and its World Endurance Championship (WEC) operations.

According to the announcement from Etihad, this partnerships represents a significant expansion of the airline’s footprint in motorsport, moving beyond its long-standing role as a race title sponsor to a direct team alliance. The deal will see the airline’s branding integrated into key team assets while utilizing McLaren’s global platform to support Etihad’s international growth strategy.

Scope of the Partnership

The agreement outlines a comprehensive branding package that spans multiple racing series and aviation assets. Beginning in 2026, Etihad Airways branding will be visible on the McLaren Formula 1 team’s challenger, the MCL40. Specifically, the airline’s logo will appear on the rear wing and halo of the car, as well as on the helmets of drivers Lando Norris and Oscar Piastri.

Beyond Formula 1, the partnership extends to the FIA World Endurance Championship. Etihad will feature on the McLaren United Autosports Hypercar entry, ensuring visibility across two of the world’s premier racing categories.

The McLaren-Liveried Dreamliner

A central component of the partnership is the creation of a bespoke aviation asset. Etihad Airways has confirmed plans to paint a flagship Boeing 787 Dreamliner in a special McLaren Racing livery. This aircraft will operate across Etihad’s global route network, serving as a roving ambassador for the partnership.

In a statement regarding the collaboration, Antonoaldo Neves, Group CEO of Etihad Airways, highlighted the synergy between the two brands:

“Formula 1 racing brings together fans from around the world in one of the most exhilarating sports, and we’re excited to see the Etihad brand across the 2026 McLaren car as it competes worldwide. In celebration… we will also unveil a stunning new aircraft livery designed with McLaren branding.”

Strategic Context and Market Impact

AirPro News analysis

While the official press release focuses on the branding assets, AirPro News notes that this move signals an intensification of the “airline wars” currently playing out within the Formula 1 paddock. Middle Eastern carriers are increasingly utilizing the sport as a primary vehicle for global marketing.

Etihad has held the naming rights to the Abu Dhabi Grand Prix since 2009, but this team-specific deal marks a strategic pivot toward year-round visibility. By aligning with McLaren, Etihad places itself in direct competition for share of voice with regional rivals such as Qatar Airways, which serves as a Global Airline Partner for F1 and sponsors the Alpine team, and Saudia, which is aligned with Aston Martin.

This partnership also aligns with Etihad’s “Journey 2030” strategy, which aims to triple passenger numbers to 33 million by the end of the decade. Partnering with a team that travels to key hubs across the UK, Europe, Asia, and Australia mirrors the airline’s own logistical network requirements.

Industry estimates suggest that “Official Partner” tier deals involving major logistical and branding assets typically range between $15 million and $30 million annually, though the specific financial terms of this agreement remain confidential. For McLaren CEO Zak Brown, this addition brings another blue-chip partner to a roster that is already the largest on the grid, further insulating the team’s revenue streams from on-track volatility.

Executive Commentary

Both organizations have framed the deal as a convergence of shared values regarding innovation and customer experience. Zak Brown, CEO of McLaren Racing, emphasized the logistical benefits of the alliance:

“We’re excited to welcome Etihad Airways as an Official Partner. As we travel to more races around the world, working with a global airline that shares our passion for excellence is a natural fit.”

The partnership will also include extensive digital and experiential rights, likely leveraging Etihad’s previous investments in immersive technology to engage fans globally.

Sources: Etihad Airways

This article is based on an official press release from Qantas Group and summarizes additional market analysis.

Qantas Group Posts $1.46 Billion Profit for 1H26 Amidst Historic Fleet Renewal

The Qantas Group has released its financial results for the first half of the 2026 financial year (1H26), reporting a robust Underlying Profit Before Tax of $1.46 billion. This represents a 5% increase compared to the same period last year, driven largely by sustained domestic demand and the continued growth of its loyalty division.

Despite the profit growth and the announcement of significant shareholder returns, including a $300 million interim dividend and a $150 million share buy-back, market reaction has been mixed. According to market analysis following the announcement, Qantas shares dipped approximately 6-7%, reflecting investor caution regarding rising operational costs and the capital intensity of the airline’s ongoing fleet renewal program.

In a statement accompanying the results, the airline highlighted that while revenue climbed to $12.9 billion, the Group is navigating a complex environment of “cost escalation” within its international operations.

Financial Performance Overview

The Group’s financial health remains strong, with key metrics showing growth or stability across the board. According to the official media release, revenue increased by 6% to $12.9 billion. While Statutory Profit After Tax remained flat at $925 million, the Underlying Earnings Per Share (EPS) grew by 7% to 68 cents.

Shareholders are set to benefit from increased returns. The Group declared a fully franked interim dividend of 19.8 cents per share, payable on April 15, 2026. Additionally, an on-market share buy-back of up to $150 million was announced.

“The result was driven by robust domestic demand and the growing contribution of its loyalty division, offsetting a decline in international earnings caused by rising costs.”

— Qantas Group Media Release

Net debt was reported at $5.6 billion, landing squarely within the Group’s target range of $5.6 billion to $7.0 billion. Operating cash flow remained strong at $1.8 billion, effectively matching the net capital expenditure required for the airline’s massive fleet upgrades.

Segment Analysis: Domestic Strength vs. International Headwinds

The 1H26 results reveal a divergence in performance between the Group’s domestic and international operations.

Group Domestic

The domestic sector remains the profit engine for Qantas. Earnings Before Interest and Tax (EBIT) for the segment rose 14% to $1.05 billion. Revenue increased by 5% on a 4% capacity increase. The airline attributed this success to strong growth in business-purpose travel, particularly from the Western Australia resources sector, as well as premium leisure demand. The introduction of new A321XLR and A220 commercial aircraft is also credited with improving operational efficiency.

Group International

Conversely, Group International faced challenges, with EBIT falling 6% to $463 million. While revenue grew by 5%, aided by the return of an A380 and high premium cabin demand, profitability was squeezed by rising costs. Qantas cited elevated engineering expenses, higher wages, and training costs for new aircraft induction as primary drivers. Furthermore, the airline noted softer demand in the Economy cabin on Australia-US routes, prompting a strategic shift to replace the A380 with the Boeing 787 on the Melbourne-LAX route.

Qantas Loyalty

The Loyalty division continued its consistent upward trajectory, delivering an EBIT of $286 million, a 12% increase. Membership has expanded to 18.3 million, with points earned up by 10% and redemptions increasing by 17%. New initiatives, such as the “Classic Plus” flight rewards, have reportedly driven higher member engagement.

Strategic Fleet Renewal and Restructuring

Qantas is currently undertaking what it describes as the “largest fleet renewal in history.” During the first half of FY26, the Group took delivery of nine new aircraft. The pipeline remains aggressive, with another 30 aircraft expected to arrive over the next 18 months. These new assets are critical to the Group’s strategy; Qantas notes that new aircraft drove approximately 60% of Jetstar’s profitability increase through efficiency gains.

Significant portfolio adjustments were also announced regarding the Jetstar brand:

• Jetstar Asia (Singapore): The Singapore-based entity was closed in July 2025, with assets redeployed elsewhere in the Group.
• Jetstar Japan: Qantas announced its intention to sell its 33.3% stake in Jetstar Japan, signaling a retreat to focus capital on core domestic operations.

On the network front, Qantas announced its first direct flights from Sydney to Las Vegas and confirmed that Project Sunrise, ultra-long-haul flights using A350s, remains on track.

AirPro News Analysis

The market’s negative reaction to a record profit result highlights a shift in investor sentiment. While the headline profit of $1.46 billion is impressive, the underlying “cost stickiness” in the International segment is a valid concern. Inflation in airport charges and government fees, reportedly rising at double the rate of inflation, poses a long-term threat to margins.

Furthermore, the capital intensity of the fleet renewal program ($1.8 billion in capex for 1H26 alone) restricts free cash flow. Investors appear to be weighing the long-term efficiency benefits of the A321XLRs and A220s against the immediate reduction in cash available for aggressive capital returns. The decision to divest from Jetstar Japan suggests a disciplined approach to capital allocation, prioritizing high-yield domestic dominance over peripheral Asian market share.

Outlook for FY26

Looking ahead, Qantas expects Domestic revenue to increase by approximately 3% in the second half of the financial year. International revenue is forecast to grow between 1% and 3%. To combat inflationary pressures, the Group has set a transformation target of $400 million in cost and revenue benefits for FY26. The fuel bill for the second half is forecast at approximately $2.5 billion.

Frequently Asked Questions

When will the Qantas interim dividend be paid?

The interim dividend of 19.8 cents per share is payable on April 15, 2026.

Why did Qantas shares fall despite the profit?

Market analysts cited concerns over rising international costs and the high capital expenditure required for new aircraft, which impacts free cash flow.

What is happening with Jetstar Japan?

Qantas has announced its intention to sell its 33.3% stake in Jetstar Japan to focus resources on its core domestic operations.

Sources

• Qantas Newsroom

This article is based on an official press release from Etihad Airways.

Etihad Airways to Deploy Flagship A380 to Bangkok Starting October 2026

Etihad Airways has announced that its Airbus A380 will make its debut on the Abu Dhabi (AUH) to Bangkok (BKK) route later this year. Beginning October 25, 2026, the Airlines will upgrade one of its daily services to the double-decker aircraft, significantly increasing capacity on one of its most popular leisure routes ahead of the winter travel season.

The delivery marks the first time Etihad has operated the A380 to Thailand. The aircraft will replace the current equipment on the evening departure from Abu Dhabi, bringing the carrier’s most exclusive cabin products,including The Residence and First Apartments,to the Southeast Asian market.

A380 Schedule and Capacity Upgrade

According to the airline’s schedule, the A380 will operate the daily EY402 and EY403 rotation. The move is designed to support high demand for travel between Thailand, the Middle East, and Europe.

Flight Schedule (Effective October 25, 2026):

• EY402: Departs Abu Dhabi (AUH) at 21:20, Arrives Bangkok (BKK) at 06:35 (+1).
• EY403: Departs Bangkok (BKK) at 08:30, Arrives Abu Dhabi (AUH) at 12:20.

Arik De, Chief Revenue and Commercial Officer at Etihad Airways, highlighted the strategic importance of the route in the company’s announcement.

“We’ve seen huge excitement around where our next A380 would fly – and Bangkok has been one of the most requested destinations. It’s a city that blends energy, culture and world-class hospitality, making it the perfect match for our flagship aircraft.”

Arik De, Chief Revenue and Commercial Officer, Etihad Airways

Premium Cabins: The Residence and First Apartments

The return of the A380 introduces Etihad’s halo products to the Bangkok route. The aircraft features The Residence, a three-room private suite located on the upper deck. Accommodating up to two guests, it includes a living room, a separate bedroom, and an ensuite bathroom with a shower.

Additionally, the first-class cabin offers nine First Apartments. These private suites feature a leather lounge chair and a separate ottoman that converts into an 80-inch lie-flat bed. First Class guests also have access to the exclusive First shower room.

Business and Economy Configurations

The upper deck also houses 70 Business Studios, providing direct aisle access and fully lie-flat beds for every passenger. Between the First and Business cabins, passengers can access “The Lobby,” a serviced lounge and bar area designed for socializing during the flight.

On the main deck, the Economy cabin is configured with 68 Economy Space seats, which offer an additional four inches of legroom, and 337 standard Economy seats featuring fixed-wing headrests. In total, the aircraft accommodates nearly 500 passengers, offering a substantial capacity boost over the smaller widebodies typically used on this sector.

AirPro News Analysis

The decision to deploy the A380 to Bangkok underscores the route’s status as a heavy-volume leisure corridor. While many airlines have retired their superjumbos, Etihad has strategically reactivated its fleet to serve high-density markets like London, New York, and now Bangkok. The timing aligns with the peak winter holiday season, allowing Etihad to capture premium leisure traffic competing with regional rivals like Emirates, which also operates A380s into Bangkok.

Frequently Asked Questions

When does the Etihad A380 start flying to Bangkok?
The A380 service begins on October 25, 2026.

Which flights will be operated by the A380?
The A380 will operate flight EY402 from Abu Dhabi and the return flight EY403 from Bangkok.

Is The Residence available on this route?
Yes, The Residence is available for booking on the A380 service to Bangkok.

Sources

• Etihad Airways