Air Arabia
Sector: Aviation / Low-Cost Airline Country: UAE
15 October, 2026
The airline has grown from a Sharjah-based start-up into the Middle East and North Africa’s largest low-cost carrier operator, building a multi-hub network that extends across the UAE, Morocco, Egypt and, increasingly, Saudi Arabia.
Founded in 2003, Air Arabia pioneered the low-cost airline model in the region. The group is chaired by Sheikh Abdullah bin Mohammad Al Thani, while Adel Al Ali serves as group chief executive and has led its development for more than two decades.
Air Arabia entered 2026 following record annual performance. Revenue increased 15 per cent in 2025 to Dhs7.78bn, while net profit after tax rose 11 per cent to Dhs1.62bn. The airline carried 21.8 million passengers during the year and recorded an average seat load factor of 85 per cent.
The first half of 2026 was considerably more challenging. Regional conflict and airspace disruption reduced operating capacity, while fuel costs remained elevated. Revenue declined 1 per cent year on year to Dhs3.48bn and net profit fell 51 per cent to Dhs374m.
Despite the disruption, the group carried more than 8.7 million passengers during the six-month period and maintained an average seat load factor of 83 per cent, indicating continued underlying demand across its network.
A major strategic development followed in September 2026. Saudi Arabia’s General Authority of Civil Aviation awarded an Air Operator Certificate to a consortium led by Air Arabia to establish a new national low-cost carrier based at King Fahd International Airport in Dammam. The consortium also includes Nesma Group and KUN Holding and has majority Saudi ownership.
Operations began on September 20, 2026, initially linking Dammam with Riyadh, Jeddah and Madinah.
The launch gives Air Arabia another platform from which to deploy its low-cost operating expertise without relying solely on its existing hubs. After more than two decades of expansion, the group’s next phase will increasingly be shaped by how effectively it scales its Saudi operation while preserving the cost structure and operating discipline that have historically underpinned its profitability.
