Air Arabia to launch low-cost Saudi airline

The Saudi General Authority of Civil Aviation announced Sunday that a consortium made up of Air Arabia, Kun Investment Holding, and Nesma has secured the bid to operate a new low-cost national airline based at King Fahd International Airport in Dammam.

According to a statement posted on X, the new carrier aims to strengthen air connectivity in the Eastern Region, boost seat capacity, and offer competitive travel options. The airline will operate both domestic and international routes, targeting 57 international and 24 domestic destinations by 2030.

To achieve the goals of the Aviation Program under the National Transport and Logistics Strategy, #GACA announces that «AirArabia Alliance» has won as the new low-cost national carrier at King Fahd International Airport in Dammam, with the aim of enhancing air connectivity in the… pic.twitter.com/8IRyOb2yD5

— هيئة الطيران المدني (@ksagaca) July 20, 2025

The airline plans to carry up to 10 million passengers annually with a fleet of 45 aircraft, and is expected to create more than 2,400 job opportunities.

Saudi Minister of Transport and Logistic Services, Saleh Al-Jasser, welcomed the move, stating the new airline will “contribute to enhancing competition” and expand choices for travelers.