Saudi Arabia’s flynas to buy 30 widebody aircraft; confirms IPO

6 months ago Editor

Riyadh: Saudi Arabia’s budget airline, flynas, announced its intention to purchase 30 widebody aircraft to expand its network and enhance its competitiveness with regional rivals. The airline has issued a request for proposal (RFP) to aircraft manufacturers, as revealed by CEO Bander Almohanna, though specific models under consideration were not disclosed. Currently, flynas operates a fleet that includes four A330 widebody aircraft.

Earlier this month, flynas celebrated the arrival of its 50th Airbus A320neo jetliner at King Khalid International Airport in Riyadh, marking a significant milestone. This delivery is part of a larger order of 120 A320neo aircraft, valued at over SAR 32 billion.

Speaking at the Airline Economics Growth Frontiers Conference in Riyadh, Almohanna indicated that flynas expects to finalize and announce the winning bid for the new aircraft by the end of this year. This acquisition is intended to support the airline’s strategic growth plans.

Additionally, flynas confirmed its plans to launch an initial public offering (IPO) later this year. The airline reported revenues of SAR 6.3 billion in 2023, a 32 percent increase from 2022, marking the first time flynas has disclosed its annual revenue figures. The IPO is expected to take place in 2024, with financial advisory roles handled by Goldman Sachs Group, Morgan Stanley, and Saudi Fransi Capital.

“Connecting the World to the Kingdom”

flynas’ expansion strategy, titled “We Connect the World to the Kingdom,” aligns with the goals of Saudi Vision 2030, aiming to link the country with 250 international destinations. The shift towards widebody aircraft reflects the airline’s intention to expand its network and cater to more Haj and Umrah pilgrims, who constitute a significant portion of its customer base. The airline also plans to explore new routes to Western Europe and other long-haul destinations.

Since its launch in 2007, flynas has consistently achieved annual profits from 2015 onward, except during the pandemic. During the pandemic, flynas implemented a strategic overhaul, which included cost-saving measures that resulted in savings of SAR 375 million.

Operating over 70 domestic and international routes with more than 1,500 weekly flights, flynas has served over 78 million passengers since its inception. The airline aims to expand its network to 165 destinations.

With the acquisition of new widebody aircraft and the planned IPO, flynas is set to significantly enhance its operational capacity and global reach, further supporting Saudi Arabia’s ambitious Vision 2030 tourism goals.