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Arab News
02-05-2025
- Business
- Arab News
Saudi Arabia's flynas Middle East's fastest-growing airline from 2019-2024: report
RIYADH: Saudi low-cost carrier flynas's capacity increased by 63 percent from 2019 to 2024, making it the fastest-growing airline in the Middle East region, according to an analysis. In its latest report, UK-headquartered global travel data provider OAG said that flynas was closely followed by the UAE's flydubai, which witnessed a capacity rise of 55 percent from 2019 to 2024. The analysis revealed that both carriers operated nearly 14.4 million departing seats each during the period, with flynas edging ahead by 25,000 travelers. The strong capacity growth of flynas aligns with Saudi Arabia's national goal to establish itself as a global tourist and business destination. The Kingdom aims to attract over 150 million visitors by the end of this decade. 'The Middle East region's strategic position as a global hub, coupled with the dynamic expansion of both low-cost and network carriers, is driving unprecedented opportunities. This vibrant market is setting the stage for future advancements in aviation technology and passenger experience,' said Filip Filipov, chief operating officer of OAG. Although flydubai and flynas' networks are similar, the latter benefits from a large domestic market within Saudi Arabia, allowing it to operate a more diverse route network, OAG added. In February, flynas announced that it expects to receive more than 100 Airbus aircraft over the next five years, part of its broader deal for 280 Airbus jets. The airline aims to operate over 160 aircraft by 2030, with its 280-plane order worth more than SR161 billion ($43 billion), making it the largest holder of single-aisle aircraft purchase orders in the Middle East. Commenting on the growth of flynas in recent years, Paolo Carlomagno, partner at Arthur D. Little, said that competitive pricing and top-notch quality have played a crucial role in the airlines' rising popularity among travelers. 'In the past five years, flynas has delivered stellar growth thanks to several factors — endogenous and exogenous. A well-planned and executed network strategy and efficient seat capacity increases, primarily driven by fleet expansion with the Airbus A320Neo, which offers lower operating costs,' said Carlomagno. He added: 'Flynas has also expertly managed the difficult trade-off between pricing and quality of service and delivered strong operational performance over the past five years.' The Arthur D. Little official added that the growth of flynas as a leading air carrier globally could help Saudi Arabia achieve its national tourism goals as outlined in the Vision 2030 initiative. He further highlighted that flynas has a significant opportunity to expand, as the market penetration of low-cost carriers in the Kingdom is comparatively low compared to other leading markets. 'LCC market penetration in Saudi Arabia is still significantly lower than some other major aviation markets such as South East Asia and so there is still enormous potential for them to grow further. The 'democratization' air travel trend and the connectivity with 'secondary' routes will continue to boost demand in the Kingdom,' said Carlomagno. Middle East aviation market's outlook In its latest report, OAG stated that the Middle East's aviation market has grown by 5 percent since 2019, making it the world's second-fastest-growing region after South Asia, which saw a 12 percent increase over the same period. The analysis further said that this increase was fueled by a robust combination of low-cost carrier growth and legacy carrier capacity. 'In recent years, the Middle East has established a leading position in developing new markets and connecting the region to the rest of the world with non-stop services to all continents and key cities,' said OAG. It added: 'The region has a highly competitive environment with best-in-class airlines operating in all segments, alongside ambitious plans for new aircraft and routes. This makes the Middle East a real hot spot in the aviation industry.' The report highlighted that the Middle East is the sixth-largest region in the world based on available capacity, with 270 million one-way seats in 2024, placing the area ahead of Eastern Europe and behind South Asia. According to OAG, airlines operating in the Middle East region witnessed an international travel capacity expansion of 8.9 percent by the end of 2024 compared to 2019, the second-strongest pandemic recovery, only next to South Asia, whose capacity grew by 11 percent during the same period. Affirming the growth of the aviation sector in the region, a recent report by the International Air Transport Association revealed that airlines operating in the Middle East witnessed a 3.3 percent increase in passenger demand growth in February compared to the same month in 2024. IATA added that the total capacity of Middle Eastern flights also rose by 1.3 percent year on year in February. In March, another report by Oliver Wyman also highlighted the growth of the aviation sector in the region. It underscored that the fleet of commercial airlines in the Middle East is expected to grow at a compound annual growth rate of 5.1 percent from 2025 to 2035 to reach 2,557 aircraft. The consultant management firm added that this significant growth in the region is almost double the annual global growth rate, which is projected at 2.8 percent during the same period. According to the latest OAG report, low-cost carriers accounted for 29 percent of the capacity in the Middle East region in 2024, having more than doubled in the last decade from just 13 percent of capacity in 2014. Globally, low-cost carriers operated 34 percent of the capacity last year. Competition intensifies in Middle East market According to OAG, two Middle Eastern carriers have gained prominence worldwide. Emirates and Qatar Airways are the only regional airlines to feature in 2024's Top 20 Global Airlines for Capacity and the Top 10 Global Airlines by available seat kilometers — a measure of an airline's passenger carrying capacity. The report revealed that Emirates is now the 14th largest carrier globally by seat capacity and ranks 4th in terms of available seat kilometers. On the other hand, Qatar Airways has experienced dramatic growth over the last decade, as it developed Doha into a global connecting point and moved from being the 36th largest airline globally 10 years ago to the 19th in 2024. Regarding available seat kilometers, Qatar Airways also advanced from 17th in 2019 to the sixth largest globally in 2024. The capacity of Qatar Airways increased by 18 percent between 2019 and 2024. The capacity of Emirates dropped by 7 percent in 2024 compared to 2019, while Saudia's capacity declined by 11 percent during the same period. 'Competition across the region's leading airlines is increasing, with as much investment in product as network expansion,' said OAG. The study further stated that the Middle East market is likely to experience significant disruptions in the future as additional airline capacity is added through various airline business models and the creation of new airlines in the region. 'The launch of Riyadh Air is likely to be one of the most interesting disruptions in the Middle East market in the coming years, alongside the planned growth of rival Saudi airline Saudia and its move to a new base at Jeddah,' said OAG. It added: 'Although neither of these airlines is likely to challenge Emirates' traffic in the short term, they will create a new competitive landscape as Saudi carriers vie for both transfer traffic and inbound tourism.' According to OAG, the key feature of the aviation sector in the Middle East, and particularly the bigger markets of the UAE, Qatar, and Saudi Arabia, is the depth of network that they offer to travelers. The report added that non-stop flights from the region's major hub airports reach every continent, with only a handful of international markets remaining unserved directly. Markets in South America, including Lima and Santiago, fall just outside the operational reach of the Middle East region. OAG further said that Doha to Auckland is currently the longest non-stop route operated from the Middle East by Qatar Airways, followed by Emirates' Dubai to Auckland route. 'In time, with ever-increasing aircraft ranges, it is likely these destinations will provide new markets for the network carriers to increase their revenues further,' the report added. It concluded: 'For the traveler, a seemingly ever-expanding choice of destinations to reach, along with increased competition, is likely to result in airfares remaining competitive throughout the region.'
Arab News
13-02-2025
- Business
- Arab News
Saudi low-cost carrier flynas to take delivery of over 100 Airbus planes by 2030
JEDDAH: Saudi low-cost carrier flynas expects to receive more than 100 Airbus aircraft over the next five years, part of its broader deal for 280 Airbus jets, as it expands its fleet to meet growth targets. The announcement coincided with a visit from Airbus senior management to flynas' headquarters in Riyadh. The airline aims to operate over 160 aircraft by 2030, with its 280-plane order — worth more than SR161 billion ($43 billion) — making it the largest holder of single-aisle aircraft purchase orders in the Middle East. This comes amid a growing backlog of aircraft orders in the aviation industry, with manufacturers like Boeing reducing delivery schedules for 2025, impacting Gulf carriers that have had to delay their launches. Dubai-based Emirates has been hit hard as Boeing's 777X faces major delays, with deliveries now expected no sooner than 2027. 'We value the visit of the Airbus senior management, which reflects the position of flynas as a leading Saudi carrier at the global level and also reflects the importance of our long-term partnership that has strengthened the contribution of flynas to achieving national goals in the aviation industry,' said Bander Al-Muhanna, CEO and managing director of flynas. He noted that flynas' partnership with Airbus began at its inception and strengthened in 2016 with an order for 120 aircraft. The collaboration reached a new level in 2024 with an agreement to purchase 160 Airbus A320 and A330 wide-body jets. The expansion aligns with Saudi Arabia's National Civil Aviation Strategy, which aims to connect the Kingdom with 250 international destinations, accommodate 330 million passengers annually, and attract 150 million tourists by 2030. The initiative also supports the Pilgrims Experience Program, designed to facilitate access to the Two Holy Mosques, the company said in a press release. The Airbus delegation's visit also marked flynas receiving a new Airbus A320neo last week — the first delivery of the year — bringing its fleet of the models to 54 aircraft. During their visit, Airbus executives toured flynas' headquarters and reviewed the airline's latest aviation innovations. They also met with senior officials from the Saudi airline to discuss ways to strengthen their long-term partnership. Saudi Arabia has been pushing to expand its aviation sector under Vision 2030, with national carriers ramping up fleet expansions to meet the Kingdom's growing travel and tourism targets.
