UAE’s Air Arabia to co-launch Saudi low-cost airline flying 81 routes from Dammam hub

Dubai: Saudi Arabia is launching a new national low-cost airline, with operations based out of King Fahd International Airport in Dammam, as part of a broader push to transform the Kingdom into a regional aviation hub.

The General Authority of Civil Aviation (GACA) announced that a consortium led by UAE-based Air Arabia, Kun Investment Holding and Nesma Holding, has won the bid to operate the new carrier.

The airline will begin operations with a fleet of 45 aircraft, covering 24 domestic and 57 international destinations, and aims to serve 10 million passengers annually.

This expansion is part of Saudi Arabia’s National Transport and Logistics Strategy, a key component of Vision 2030, which seeks to diversify the economy and enhance the Kingdom’s competitiveness in transport, logistics, and tourism.

Expanding air connectivity from Eastern Province

According to GACA, the new low-cost airline will enhance air connectivity to and from the Eastern Province, improve operational efficiency, and boost seat availability at King Fahd International Airport.

The airline is also expected to create more than 2,400 direct jobs and raise service quality across Saudi Arabia’s growing aviation market.

Air Arabia’s inclusion in the consortium reflects its expanding regional footprint and aligns with its strategy of entering high-growth partnerships to serve underserved routes.

This latest venture positions the Dammam airport as a growing hub for affordable air travel and supports the Kingdom’s goal of moving 100 million passengers annually by the end of the decade.