Another new Saudi airline: Air Arabia to lead new low-cost carrier
July 21, 2025
Air Arabia has confirmed that it has secured regulatory approval to launch a new budget airline in Saudi Arabia.
In a statement shared on social media platform X, the company said: “We’re proud to announce that Air Arabia has been awarded to establish a new low-cost airline based in Dammam by Saudi Arabia’s @ksagaca. We thank #GACA for their trust and support.”
Air Arabia led a consortium of stakeholders in the license bid, which included Kun Investment Holding, and Nesma Group.
The project includes plans to operate a fleet of 45 aircraft by the end of the decade. The new airline will be based at King Fahd International Airport (DMM) in Dammam.
The licence was awarded by the General Authority of Civil Aviation (GACA), which oversees regulatory approvals in the Kingdom’s aviation sector.
According to GACA, the new airline is expected to support Saudi Arabia’s efforts to enhance domestic and international air connectivity, particularly in the eastern region.
New Saudi low-cost carrier to fly to more than 80 destinations
The planned network will initially include 24 domestic and 57 international destinations. The carrier aims to transport up to 10 million passengers annually by the end of the decade.
The project forms part of the National Transport and Logistics Strategy, a central pillar of Vision 2030.
This broader initiative seeks to diversify the Saudi economy and improve the performance of key infrastructure sectors, including transport and logistics.
GACA stated that the airline is intended to help increase operational capacity and service quality within the Kingdom’s aviation industry.
Saudi Arabia already has some low-cost airlines, including flynas and flyadeal, but sees a new entrant as strengthening competition.
While the new airline has bold ambitions for 2030, little is shared about when and how it will lauch. Reports suggest a phased rollout, potentially starting as soon as next year, with services gradualy ramping up towards the end of the decade.
The Saudi Arabia airline boom
Saudi Arabia is expanding its aviation sector as part of broader efforts to diversify its economy, promote tourism, and establish the Kingdom as a key player in global air transport.
In 2023, Saudi Arabia had launched a new national airline, Riyadh Air, backed by the Public Investment Fund. Riyadh Air will serve more than 100 destinations around the world by 2030, making use of the kingdom’s location between Asia, Africa and Europe.
The launch of the new Saudi low-cost carrier is expected to create approximately 2,400 direct jobs, according to local authorities. The initiative also supports the Kingdom’s broader target of handling 100 million air passengers annually by 2030.
Further information on the new airline’s branding, recruitment, and operational schedule is expected to be released in the coming months.
