Etihad Airways, Abu Dhabi’s official air carrier, provides scheduled air transportation for passengers and cargo. The airlines's sole shareholder, the Abu Dhabi government, withdrew from its partnership in Gulf AirGulf Air in 2005 and focused on Etihad Airways.

The airline started operations in 2004 and by 2007 it carried 4.6 million passengers, an increase of 65.8% over 2006; it also handled 175,000 tons of cargo in 2007, an increase of 75% over 2006.

Etihad Airways has two wholly owned subsidiaries, Etihad Crystal CargoEtihad Crystal Cargo, which provides cargo handling services and Etihad HolidaysEtihad Holidays, a travel agency and car rental company.

Etihad Airways owned a fleet of 37 aircrafts as of January 2008 and it plans to expand its fleet to 250 by 2020. In 2008, the airline placed an order for 205 planes worth AED157.9 billion (USD43 billion). The order includes 110 AirbusAirbus and 95 BoeingBoeing airplanes, scheduled for delivery between 2011 and 2020.

Etihad plans to fly 25 million passengers a year by 2020 and double the number of cities served from 50 to 100.