Saudi Arabia is preparing to launch a new low-cost airline based out of King Fahd International Airport in Dammam. This significant development is part of the country’s ongoing efforts to transform its aviation sector and strengthen air connectivity within the Kingdom and beyond. The announcement was recently made by the General Authority of Civil Aviation (GACA), which has selected a consortium led by UAE-based Air Arabia, in collaboration with Nesma Group and KUN Investment Holding, to spearhead this initiative.

The decision to establish a low-cost carrier in the Eastern Province aligns closely with Saudi Arabia’s Vision 2030 and the National Transport and Logistics Strategy. These programs aim to diversify the national economy, reduce reliance on oil revenues, and position Saudi Arabia as a global logistics and tourism hub. By expanding affordable travel options, the new airline is expected to encourage domestic tourism, attract international visitors, and support regional economic development.

Plans for the airline include operating a fleet of 45 aircraft by the end of this decade. By 2030, the carrier is projected to serve 24 domestic and 57 international destinations, making it a key player in the growing Saudi aviation landscape. The airline’s model will follow the low-fare structure typical of budget carriers, allowing passengers to pay only for the services they need, such as baggage, meals, and seat selection. This pricing approach appeals to price-sensitive travelers and is likely to increase accessibility to air travel for a wider demographic.

A major objective of this new carrier is to boost passenger capacity at King Fahd International Airport, transforming it into a vibrant air travel hub. The airline aims to transport up to 10 million passengers annually through this airport by 2030. The increased flow of travelers is expected to benefit local businesses, create jobs, and improve the overall travel experience for residents and visitors.

The airline is set to generate over 2,400 direct employment opportunities in various sectors, including cabin crew, ground staff, maintenance teams, and administrative support. The Eastern Province, particularly the city of Dammam, stands to gain from this surge in aviation activity, which will drive demand for supporting services such as logistics, hospitality, and retail.

Coinciding with the airline’s announcement, authorities also unveiled an ambitious new master plan for the expansion of King Fahd International Airport. This plan involves 77 infrastructure projects with a total investment of over 1.6 billion Saudi riyals. Once complete, the upgraded airport will be capable of handling more than 19 million passengers annually, with the potential to scale up to 32 million in the future. It will also support up to 77 aircraft movements per hour and handle up to 600,000 tons of cargo each year.

These improvements reflect a broader vision to make Dammam a central hub for aviation and logistics in the Gulf region. In 2024 alone, the airport served 12 million passengers—marking a 35% increase from 2022—and broke its daily passenger record by surpassing 50,000 travelers in a single day.

The new low-cost airline will operate under the leadership of the “Air Arabia Alliance,” a consortium with deep experience in budget aviation. Air Arabia currently manages low-cost carriers in Sharjah, Egypt, Morocco, and Armenia, and is recognized for its efficient operations and competitive pricing. Partnering with Saudi firms like Nesma and KUN Holding ensures that the project is grounded in local market knowledge and aligned with national priorities.

This strategic partnership brings together international expertise and local investment to create an airline designed for rapid growth and long-term sustainability. Once operational, the airline will enhance connectivity to underserved routes, reduce travel costs, and improve Saudi Arabia’s standing as an air transit destination.

Regulatory approvals and licensing are currently underway, and the airline is expected to begin operations as early as 2026. As Saudi Arabia continues to reform its aviation sector, this new entrant will likely trigger increased competition among existing carriers, including flynas and flyadeal. This competition could lead to improved services and more affordable fares across the board.

The launch of a new low-cost airline from King Fahd International Airport is more than just a business move—it represents a major step toward achieving national economic transformation goals. With millions of passengers expected, thousands of jobs created, and dozens of destinations added, the airline promises to reshape the travel landscape in the Eastern Province and across Saudi Arabia.

In summary, Saudi Arabia’s upcoming budget airline will serve as a key catalyst in the country's aviation expansion. It will not only make flying more affordable and convenient for residents and visitors but also strengthen Dammam’s position as a gateway to the region. As infrastructure is modernized and capacity expanded, the new airline is set to play a central role in supporting Vision 2030’s targets for tourism, logistics, and sustainable growth.