SGS receives flynas notice to terminate ground handling agreement

The ground handling agreement covers flynas’ domestic and international flights at airports across Saudi Arabia

Saudi Ground Services Co. (SGS) said it received written notice from flynas on Sept. 6 terminating the ground handling services agreement, pursuant to the termination right stipulated in the agreement and subject to a six-month prior written notice period.

SGS will continue to provide services to flynas in the ordinary course, in accordance with the terms and conditions of the agreement, throughout the notice period. The termination will become effective on March 5, 2027, according to a statement to Tadawul.

There will be no material financial impact on the company’s financial results for 2026, as services will continue to be provided during the contractual notice period. The impact on revenue is expected to commence on March 6, 2027.

The contract generated revenues of SAR 151.47 million in H1 2026 and are expected to reach approximately SAR 306 million by the end of 2026. SGS also indicated that it will work to increase productivity and rationalize expenses to mitigate the financial impact of the contract termination.

According to Argaam data, SGS announced in April 2024 the renewal of its contract with flynas to provide ground handling services for flynas flights at all airports in the Kingdom, with an expected value of SAR 2 billion.

The company stated that the contract term is five years, from January 1, 2024, to December 31, 2028.

flynas announced today that it has signed a five-year ground handling agreement with Swissport Saudi Arabia to provide ground handling services at all commercial airports in the Kingdom.