Saudia eyes fleet, network expansion: More routes and flights coming soon

Dubai: Saudi Arabia's national carrier, Saudia, is actively accelerating its fleet and network expansion plans. The airline is making significant moves, including major aircraft orders and pushing for faster innovation and technology adoption, all part of a strategy to strengthen its position and compete with major regional aviation players like Emirates and Qatar Airways.

Just last month, Saudia unveiled a substantial agreement with Airbus for up to 20 new wide-body A330neo aircraft. This included a firm order for 10 jets for flyadeal, Saudia's sister budget carrier, marking a 'milestone' expansion for their fleet. Looking ahead, Saudia is also set to embark on an ambitious retrofit programme for its existing aircraft.

According to Arved von zur Muehlen, Saudia's EVP and Chief Commercial Officer, there's more growth on the horizon. This year, Saudia anticipates receiving five new narrow-body aircraft. These planes will enable the launch of 10 new destinations during the summer peak, primarily targeting routes in the Mediterranean and Europe, including popular spots like Venice, Crete, Malaga, Antalya, and Bali.

“We will receive five aircraft which are narrow-bodies. So, the wide-body fleet will not change this year. We have started announcing 10 new destinations for the summer peak, which are all in the three to four-hour range,” said Muehlen. He said the airline is focused on enhancing its European network.

“Currently, we are very strong naturally in South Asia, such as Pakistan, Bangladesh, and India. We are very strong in Indonesia and in Malaysia. So, but we are always... we are constantly looking. But right now, it is more... since I don't get new planes this year, you know, we need to use our planes in the most efficient way, so it's more and more regional destinations,” he explained.

Saudia currently has a significant pipeline of 128 new aircraft on order. This planned growth represents a substantial 87 per cent increase in its fleet size, designed to support Saudi Arabia's national goal of welcoming 150 million tourists by 2030. A core component of this overarching strategy involves enhancing the Jeddah hub, said Muehlen. The aim is to boost its capacity to capture more international transfer traffic significantly.

Regarding aircraft delivery delays, Muehlen said delays "are there." Still, Saudia is "managing it" through mitigation measures such as exploring wet leasing and optimizing maintenance to maximize existing fleet utilization. He added that while Saudia keeps an "open mind" about future fleet options like China’s Comac aircraft, such considerations are long-term. Muehlen also said that the airline is not keen to acquire the Boeing aircraft that Chinese carriers have earmarked.

Muehlen emphasized Saudia's close collaboration with Saudi aviation authorities (GACA) and airport operators, describing the airline's role as integral to the "Saudi ecosystem" supporting the Kingdom's massive infrastructure developments and contributing significantly to achieving the ambitious Vision 2030 passenger targets.

Discussing the competitive regional landscape, Muehlen said, "We welcome every competition; it keeps us alert, and we like the competition." He sees Saudi and Saudia as a "sleeping giant" that is "fully awake now."

Despite growing demand and a "massive influx of carriers coming into the Kingdom," which increases capacity, Muehlen doesn't foresee a "huge impact on fares," expecting levels to remain "very stable" overall, with capacity growth potentially outweighing demand increases, leading to many "specials out there." While remaining tight-lipped on specific new source markets, Muehlen indicated that Europe and Africa are regions where they are actively looking to fill "white spots" in their network.

Saudia is implementing a retrofit program to install new premium business suites with doors on its wide-body B777s and upcoming narrow-body deliveries. Fleet-wide high-speed Wi-Fi is being rolled out over the next two years. 15,000 seats will be upgraded across Saudia’s current fleet with a focus on functionality and aesthetics. The seat upgrade program will start by late 2025 and up to late 2027 for its B777s and Airbus A330s. The upcoming B787 and A321XLR will feature the new design concepts, scheduled for delivery in 2026.

The airline also rapidly integrates AI capabilities into its digital platforms to improve search, personalization, and booking, aiming for a future "AI-empowered travel companion," Muehlen stated. “We embarked on a retrofit program focusing on the business class and the premium passenger. We are retrofitting our wide-body 777s first, but you will also see the same business class seat on the narrow-body fleet (as well),” he added.

 Muehlen said that despite encountering turbulence in the broader industry – such as disruptions affecting North Atlantic traffic due to geopolitical factors – Saudia is experiencing "extremely strong growth and a lot of interest in Saudi Arabia.”

Muehlen said the airline’s exposure to the US is rather limited. “We have 20 weekly connections. We don't see it in our bookings but closely monitor what is happening around us. But for us, we have extremely strong load factors.” The airline is leveraging this demand and focusing on managing the ongoing Hajj season while executing its expansion strategy.

“The first (of the) Hajj flights are coming in, so our mind is focused on Hajj and providing a great season for our passengers. But now we have built the Jeddah hub, so we also see all the connections coming in, which we haven't seen like five years ago,” he added.

The airline is actively leveraging this positive trend while focusing on key operational periods, like managing the ongoing Hajj season, as it implements its long-term expansion strategy.