Low-cost carriers hold 39% of Saudi aviation market: flynas CEO

Bander Al-Mohanna, CEO and Managing Director of flynas

Bander Al-Mohanna, CEO and Managing Director of flynas, indicated that low-cost carriers currently make up 39% of the Saudi aviation market, below the 60% seen in comparable markets, signaling vast potential for expansion.

In an interview with Al Arabiya TV, he highlighted the Saudi market’s current trajectory of massive growth, aligning with Vision 2030 targets that aim to raise passenger volumes to 330 million travelers, from roughly 128 million at present.

He further noted that the Saudi low-cost aviation segment is witnessing accelerated growth and is destined to be the key propeller for the Kingdom’s aviation industry in the coming years.

As for competition and market share given this growth, Al-Mohanna said, “We embrace competition when it is presented by strong, well-managed enterprises. The Saudi market’s rapid expansion translates into extensive capacity for all competitors.”

Commenting on the Q3 2025 financial results, the CEO explained that flynas transported more than 4.2 million passengers during the three-month period, marking a 15% annual increase.

This in turn led to a 6% rise in revenues, supported by cost discipline, lower fuel prices, and improved fleet utilization.

Moreover, EBITDA jumped by 21% during the same period, reaching SAR 617 million — the highest since the company’s listing, he noted.

In Q3 2025, flynas boosted its seat capacity by 22%, while the number of active aircraft reached 68 planes by the end of September — including 7 new aircraft added this year. The fleet is expected to reach 74 aircraft at the beginning of 2026, and 150–160 aircraft by 2030, under the company’s expansion plans, according to Al-Mohanna.

During the first nine months of the year, flynas launched 19 new destinations across seven countries, including Geneva, Milan, Krakow, Moscow, and Nairobi, said the top executive. He expected 2026 to see further expansion into Europe and Asia, with plans to launch flights from Madinah to Baghdad next month.

He also highlighted that CFM engine supply challenges took a toll on the operation of some aircraft this year. However, the issue is likely to be fully resolved by early 2026. In the meantime, the company temporarily resorted to wet-leasing aircraft to maintain its market share and planned expansion.

Al-Mohanna also pointed out that shareholders' equity has doubled to SAR 3.5 billion as of Sept. 20, 2025, while liquidity increased to SAR 4.6 billion. He noted that these funds will be invested in sustainable expansion and fleet growth.

According to Argaam’s data, flynas logged SAR 594.4 million in losses during the first nine months of 2025, against a SAR 492.6 million profit in the same period a year earlier. Meanwhile, the third-quarter earnings increased by almost 15% YoY to SAR 120.2 million.