Saudi Budget Airline Flynas Plans IPO, Reports Strong Revenue Growth

Saudi Arabia's low-cost airline Flynas has announced plans to launch an initial public offering (IPO) on the Tadawul stock exchange in 2023. The airline reported impressive financial results, with a 32% revenue growth reaching $1.68 billion in 2023.

As part of its ambitious expansion strategy, Flynas is considering placing an order for 30 wide-body aircraft. This move aligns with the airline's 'We connect the world to the kingdom' initiative, which aims to support the growth of Saudi Arabia's tourism sector.

Flynas currently operates a fleet of over 60 Airbus A320-family aircraft and recently sealed a deal for 30 A320 Neo aircraft, part of a larger order of 120 planes valued at over $8.5 billion. The airline has set a target to upscale its fleet to 250 aircraft by 2030, in line with Saudi Arabia's goal of accommodating 330 million passengers and attracting 150 million tourists annually.

In addition to its financial success and expansion plans, Flynas has also made strides in sustainability. The airline became the first in Saudi Arabia and the first low-cost carrier in the Middle East to join the United Nations Global Compact, promote sustainability. Flynas has focused on digital transformation, reducing paper usage and fuel consumption, and adopting sustainable practices.

Why this matters: Flynas' IPO plans and strong financial performance reflect the growing demand for low-cost air travel in Saudi Arabia and the region. The airline's expansion strategy aligns with the Kingdom's ambitious tourism targets, which aim to diversify the economy and reduce dependence on oil revenues.

Bander Almohanna, CEO and Managing Director of Flynas, expressed confidence in the airline's future prospects, stating, "Flynas is well-positioned to capitalize on the growth opportunities in the Saudi aviation market and beyond. Our IPO plans and fleet expansion will enable us to connect more people to the Kingdom and contribute to the realization of Vision 2030."

Key Takeaways

• Flynas will launch an IPO on the Tadawul stock exchange in 2023, reports 32% revenue growth.
• Flynas' fleet to reach 250 aircraft by 2030, aligning with Saudi's passenger and tourism goals.
• Flynas is the first Saudi airline and first Middle East LCC to join UN Global Compact.
• Flynas' IPO and expansion reflect a growing demand for low-cost air travel in Saudi Arabia.