flyadeal CEO: Saudi aviation seen to continue growth in 2026

Steven Greenway CEO of flyadeal

Steven Greenway, CEO of flyadeal, said Saudi Arabia’s aviation sector posted strong and highly dynamic growth by the end of 2025, noting that the Kingdom’s domestic market is expanding at an annual rate of about 15%, outpacing most global markets.

In an interview with Argaam, Greenway said the market is seeing the addition of new capacity and intensified competition, but demand remains robust, with growth expected to continue into 2026.

Commenting on the rise in passenger numbers to 10.7 million in 2025, up 33% year on year (YoY), Greenway said the increase was driven by the airline’s domestic expansion as well as international growth. He pointed to network strengthening toward destinations such as Egypt, Turkey and Pakistan, noting that the airline began operations in Pakistan last year and now serves five destinations there.

He added that growth in Hajj and Umrah travel was a key performance driver in 2025, as the airline increased its focus on transporting pilgrims compared with 2023 and 2024, helping diversify growth sources.

On the expansion of destinations to 43, Greenway said route viability is assessed through multiple approaches, including launching new routes with limited historical data while closely monitoring performance indicators to decide whether to continue or exit. Expansion is also targeted at destinations with clear demand indicators, such as labor routes, or through local partnerships that help secure a minimum level of demand in certain markets.

On increasing the number of routes to 159 and its impact on operating margins, Greenway explained that the decisive factor is not the number of destinations or routes per se, but rather improving aircraft utilization by increasing daily operating hours and flight cycles.

He noted that average aircraft utilization exceeds 12 hours per day, helping reduce unit costs and improve cost efficiency, supporting competitive pricing while maintaining profitability.

On the fleet, Greenway said flyadeal currently operates 44 aircraft, with the 45th set to join shortly, and expects the fleet to reach 98 aircraft within three to four years.

He said the airline is preparing to introduce the A321 next year, boosting seat capacity and competitiveness on medium-haul routes, and plans to take delivery of A330neo aircraft starting in July next year, enabling expansion into longer-haul destinations, including Southeast Asia and Western Europe.

On funding expansion plans, Greenway said fleet financing is carried out through the Saudia Group, as flyadeal is part of the group, leveraging a range of financing sources at the group level. He noted that capital investments under the program run into billions of riyals, reflecting the high cost of aircraft, engines and related capital requirements.

Regarding capacity growth and unit costs, he said higher capacity has been accompanied by improved utilization and longer daily flight hours, helping lower seat costs. Operating some routes to the Indian subcontinent during periods of lower aircraft utilization has also supported cost reduction by increasing flying hours.

On the possibility of an IPO or bringing in a strategic investor, Greenway said there are no current plans for either, noting that the airline has a strong balance sheet within the Saudia Group and is profitable, reducing the need for such options at present, with the focus remaining on safe and profitable growth.

On managing fuel and currency volatility, he said the airline does not hedge fuel domestically and relies on spot prices. Aircraft payments, fuel and spare parts are largely dollar-denominated, which is managed through operational and prudential policies.

Looking ahead, Greenway expects competition to intensify with the entry of new players and the expansion of international carriers in the Saudi market, enhancing customer choice, while flyadeal maintains its focus on safety, operational discipline and profitability.

For 2026, he said the airline expects growth to accelerate, with capacity growth likely in the 30%–35% range, citing a strong start to the year and changing travel patterns following adjustments to school holidays, while maintaining expectations for solid growth through the rest of the year.