Air Arabia CEO Adel Al Ali on the strategy behind the airline’s rise 

As the region’s first and largest low-cost carrier (LCC), Air Arabia has played a defining role in transforming travel across the Middle East and beyond.

In this conversation with Gulf Business, group CEO Adel Al Ali shares insights on the airline’s journey, strategy and future plans. 

Air Arabia has set a benchmark as the MENA region’s first and largest LCC. Tell us about this journey since its 2003 launch — the successes, growth, and transformation. 

It’s been a great journey, and overall, we’re very happy. Of course, like any journey, there were some bumps along the way. But we take pride in how Air Arabia has changed the way people travel in this region.  

The airline has made flying more accessible and helped grow tourism and trade. We’ve connected families, created jobs, and transformed travel into something that’s for everyone — not just the wealthy. 

 How has Air Arabia adapted to evolving travel trends and consumer perceptions? 

People and businesses have changed in the last 20 years, driven by technology and global exposure. Travel became something people wanted to do repeatedly. We provided the platform to enable that.

When we started, many people didn’t even understand what a low-cost airline was. Today, it’s become second nature. We gave people choices, and we went beyond capital cities to secondary airports, making travel more personal and accessible. 

Over time, we’ve helped people understand the aviation industry, not just as passengers but as informed stakeholders. The more people understood, the more they travelled — and we grew together. 

What are three key milestones that shaped Air Arabia into the success it is today? 

First, the business model itself — bringing the low-cost, value-for-money airline concept to the region. That alone changed the game. 

Second, overcoming perceptions. Initially, low-cost meant low-quality or unsafe to many in this region. But we proved that safety and service were paramount. Once passengers experienced the product, they saw that it was among the best economy offerings out there. 

Third, going public. We were the first airline in the Arab world to list. That connected our customers to the business — they became shareholders. It built loyalty and transparency. 

We’ve also weathered geopolitical disruptions and crises such as the Covid-19 pandemic. Looking back, these challenges made us stronger and more agile. 

How has technology played a role in shaping operations and customer experience? 

Massively. Operationally, tech helps us fly better, manage fuel, and run multiple hubs remotely. We can operate out of Morocco, Egypt, Pakistan, and the UAE from one central team. 

On the customer side, it’s been a total shift. In 2003, just 10–12 per cent of bookings were online. Today, most customers book through mobile, engage with us digitally, and only appear physically at the boarding gate. Ticketless travel was once unheard of — now it’s standard. 

AI, real-time data, contact centers replacing call centres — it’s all enabled faster service and deeper customer knowledge. Tech is now a top-three cost after aircraft and fuel, and it’s an investment we’ll continue to make. 

 With sustainability top of mind, how is Air Arabia approaching sustainable aviation fuel (SAF) and greener operations? 

Technology allows us to monitor efficiency, including fuel burn and engine performance. We continuously work on reducing environmental impact — newer engines, smarter flight paths and SAF initiatives. Sustainability and efficiency go hand in hand, and we’re fully committed to both. 

Air Arabia is known for its consistent growth—new hubs, underserved routes and fleet expansion. What’s the thinking behind this strategy? 

Our strategy is demand-driven. We go where there’s a need — whether that’s connecting families, supporting trade, or unlocking tourism. Before us, most airlines only served capital cities. We started flying to smaller airports — Alexandria and Upper Egypt, not just Cairo; smaller cities in Pakistan, not just Karachi; and regional destinations in Central Asia. 

We build markets. We started flying to Poland just two years ago, and we’re already expanding to three airports there. Sometimes other airlines follow us into those markets — and that’s healthy. It stimulates demand and grows the industry. 

What challenges do you see shaping the aviation sector today, and how are you navigating them? 

Challenges never go away —they just evolve. Post-Covid, supply chain issues like delays in aircraft and spares have been tough. Our region’s climate — dusty and hot — affects engine performance. 

Oil prices remain a cost factor, but we hedge fuel purchases, so we manage it. Currency volatility, regulatory hurdles across different jurisdictions, strikes in various markets — these are part of the reality. You have to stay agile and adaptable. 

During Covid, we shifted resources to Morocco when Asia was shut, then moved them back. Our model allows us to respond quickly. That flexibility is key. 

Beyond being a transport provider, what role does Air Arabia play in regional economic development? 

Aviation drives prosperity. When we started in 2003, Sharjah Airport had 200,000 passengers annually and maybe 1,000 staff. Today, it’s more than 20,000 staff and a full-fledged ecosystem — from taxis to restaurants and hotels. 

Every new flight creates economic ripple effects — jobs, tourism, infrastructure. We’ve seen that in Sharjah and across the UAE. It’s not just about travel; it’s about enabling economic growth and improving quality of life. 

What values have helped Air Arabia grow, and what can other companies learn from your approach? 

Keep it simple. Stick to your promise. We’ve had the same business model for 20 years because it works. Change only when it adds value to customers or operations — don’t change just for the sake of it. 

Leadership is about surrounding yourself with the right people and letting them do their best. If you insist on everything being done your way, you miss out on new ideas and innovation. It’s about empowering your team. 

Read: Air Arabia reports Q2 2025 net profit of Dhs415m

What’s next for Air Arabia as we move into the second half of the  year and beyond? 

We’re growing. We have 120 aircraft on order, with five arriving in Q4 this year. Some of these have longer range, enabling us to fly nine-hour sectors east, west, or north. 

We’re expanding our network, especially in the Arab world. We’re also investing in our people — our leadership development is a key focus. The brand has strong recognition across the region, and we’re excited to share our expertise more broadly and continue building a more connected and competitive aviation industry.