Middle Eastern low-cost carrier Air Arabia expects to begin flying with its new Saudi Arabian venture in the third quarter of 2026, opening a fresh front in one of the world's fastest-growing aviation markets. The Sharjah-based airline confirmed the timeline in its latest half-year financial statement, saying its “latest hub in Dammam is expected to start operations” during the current quarter.
Air Arabia holds a 49% stake in the joint venture, Air Arabia DMM, which was granted rights last year to establish a Saudi airline operating from Dammam's King Fahd International Airport in the Eastern Province. The carrier has since run a recruitment drive for Airbus A320-family pilots, and at least two initial aircraft — registered HZ-DMMA and HZ-DMMB — have already arrived at Dammam, according to photographs circulating on social media.
The ambitions for the operation are substantial. Air Arabia and its partners have previously indicated plans to build a fleet of around 45 aircraft and serve more than 80 routes from the new base, positioning Dammam as a low-cost gateway in a market that has drawn heavy investment in recent years.
The expansion comes as Air Arabia navigates a tougher trading environment. The group remained profitable over the first six months of 2026, but its net figure halved to Dhs374 million ($102 million), and second-quarter profit fell 77% to Dhs96 million. The carrier attributed the weaker performance to the regional conflict in the Middle East and related effects such as airspace closures, operating restrictions and elevated fuel prices.
Despite those headwinds, Air Arabia pointed to an average load factor of more than 80% as evidence of what it called “continued resilience in demand” across its network, adding that it remained focused on maintaining connectivity and adapting operations as conditions evolved.
A dedicated low-cost hub at Dammam would place Air Arabia squarely inside a crowded and rapidly expanding Saudi market, where a wave of carriers is scaling up at once. The kingdom's aviation strategy has spurred launches and expansions across the country, and a budget operation anchored in the Eastern Province gives Air Arabia a foothold close to the Gulf's industrial heartland and a springboard for short- and medium-haul routes.
The Airbus A320 family remains the backbone of Air Arabia's fleet strategy across its multiple hubs, and the Saudi venture is expected to follow the same single-type, high-utilisation model that underpins the group's low-cost approach elsewhere in the region.
Sources: FlightGlobal. Featured image: AI-generated by AviationShop. By Elena Vargas.
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