Etihad Airways took delivery of its first Airbus A321LR in Hamburg on Thursday, featuring first-class seats on a small plane – a departure from industry norms, where such premium cabins are typically found on long-haul flights aboard wide-body aircraft.
This is the first of 30 A321LR aircraft to join Etihad's fleet, with 20 leased from the world's largest aircraft lessor AerCap and 10 on order from Airbus, Etihad chief executive Antonoaldo Neves said in Hamburg on Thursday. Commercial flights start on August 1.
Etihad will take delivery of 10 A321LRs this year, 10 in 2026, five in 2027 and another five in 2028, he said. “This is not just one extra aircraft that we're receiving," he added. "It's an aircraft that's going to shape the growth of the airline in 2025 and 2026, the backbone of our growth is going to be on this plane.”
Etihad began working on the project in April 2023, which culminated in offering the “comfort of a private jet” on a narrow-body plane, he added.
The new aircraft will allow Etihad to strengthen its network and “explore new destinations, especially in South-East Asia and Europe, that we could never serve with a wide-body", Mr Neves said.
The plane will “redefine luxury” on narrow-body jets, particularly as an emerging class of travellers in the region is willing to pay for premium services, he said, pointing to the two billion people who can be served within a five-hour flight from Abu Dhabi.
Etihad will use its A321LR plane to unlock and grow new markets and, in the future, “upgauge” those markets by deploying a wide-body, reducing the risk of opening a new market, Mr Neves said. The plane will also be used to increase flight frequencies on some of Etihad's thinner routes, he added.
The strategy is to allow a first-class passenger on Etihad's A380 flight from Toronto, for example, to connect on an A321LR first-class product to Phuket. “This plane is going to provide a seamless and consistent journey for the customer,” Mr Neves said.
First-class target
Etihad plans to equip its entire fleet of wide bodies and narrow bodies with a first-class product by 2030, going against an industry-wide trend of many airlines removing their first-class seats and improving their business-class product.
“We want to have all the planes in Etihad with a first-class – that’s the target in five years,” he added.
The Abu Dhabi market is “booming”, with the population growing 7.5 per cent last year, Mr Neves said. Etihad last week said it had flown more than 20 million passengers in a 12-month period for the first time in its history, up from 10 million in 2022.
It plans to carry 38 million passengers by 2030, up from a previous goal of 33 million.
“There is no lack of demand. Our concern right now is we need more planes to make sure that we account for demand,” Mr Neves said.
Etihad will grow its fleet to 220 planes by 2030, he added, noting that the airline will receive 20 planes every year for the next five years. The airline had 101 aircraft in operation as of June.
'Rare' strategy
The Abu Dhabi-based airline is known for its ultra-luxury product, The Residence – a three-room configuration featuring a private bedroom, an en suite shower and a living area with a Savoy-trained personal butler – available on the mammoth double-decker Airbus A380.
Now, Etihad is introducing a first-class suite on its long-range, single-aisle A321LR jet, flying short-to-medium-haul routes. Analysts say the ambitious cabin layout is unusual in the industry.
“It’s extremely rare,” said Linus Bauer, founder and managing director of UAE-based boutique aviation consultancy BAA & Partners.
The A321LR and longer-range A321XLR aircraft have been mainly positioned as “premium-capable narrow-bodies, but first-class installations remain an exception”, he said.
“Typically, first class is the domain of wide-body, long-haul aircraft where both cabin space and yield potential justify the added cost and real estate,” he said.
First class has increasingly become a niche product and many airlines have ceased offering it on their long-haul routes, said John Strickland, aviation analyst and director of JLS Consulting. “That said, there is a core market in the Gulf region which Etihad can tap,” he said.
'Back to the game'
Mr Neves said the first-class offering on narrow-body jets would be a game-changer for the airline. “I'm 100 per cent confident that the product we've designed is going to be wow for first-class customers in a narrow-body … Etihad is back to the game,” he told The National ahead of the delivery.
“It's not about the size of the plane that you cannot create a first-class experience. It's all about execution and the product you offer.”
Amenities in the new first-class suite include two private, enclosed spaces with sliding doors, lie-flat beds and companion seating, along with a large 20-inch 4K screen for entertainment, with Bluetooth pairing and wireless charging.
“Today marks an extraordinary moment for Etihad as we welcome an aircraft that changes everything we thought possible on a single-aisle plane,” Mr Neves said. “The A321LR enables us to serve more destinations with the same premium experience.”
A321LR routes
Etihad’s A321LR will operate from Abu Dhabi’s Zayed International Airport to short and medium-haul destinations across Europe, Asia and the Middle East.
It will initially fly to Phuket before expanding service to Algiers, Bangkok, Chiang Mai, Copenhagen, Dusseldorf, Kolkata, Krabi, Krakow, Medan, Milan, Paris, Phnom Penh, Tunis and Zurich.
An additional nine A321LR aircraft will be delivered throughout 2025, supporting the airline’s ambitious growth plans to carry 38 million passengers annually by the end of the decade.
Etihad is aggressively expanding its network, having launched or announced 27 new routes this year.
The A321LR is a longer-range variant of Airbus’ A321neo. The aircraft has a range of up to 7,400km, thanks to three additional centre tanks that store extra fuel.
Airbus says airlines can configure the A321LR cabin with layouts ranging from a single-class arrangement to multi-class set-ups featuring full-flat premium seats.
Luxury in smaller confines
Etihad seems to be using the A321LR features as a differentiator in the market, rather than a people-mover, analysts said.
“This isn’t just about seat segmentation. It’s a continuation of Etihad’s boutique pivot – an identity centred around bespoke, high-touch experiences, especially post-pandemic,” Mr Bauer said. “In the age of upgauging and densification, this is a contrarian move – but one that could carve out a defensible niche.”
The product is also a differentiator on popular, high-yield, regional routes with high competition.
Putting the premium experiences associated with large planes on to narrow-bodies helps airlines like Etihad to preserve brand consistency across the board, Mr Bauer said.
“For Etihad, a first class suite on a narrowbody ensures continuity with its wide-body experience and upsells to ultra-high-net worth individuals or VIPs travelling regionally or connecting onward in premium cabins,” he added.
A321LR features
- First Suites: private, enclosed spaces with sliding doors, fully-flat beds. Each window-facing suite features a 20in 4K screen, Bluetooth pairing, wireless charging, and additional space for a companion to sit.
- Business Class: features 14 wide-body-style seats with a 17.3in 4K screen, Bluetooth headphone pairing and wireless charging.
- Economy Class: 144 seats that are 18.4in wide, with a five-inch recline, 13.3in, 4K touchscreens and USB charging.
