Air Arabia announces new low-cost airline, plans a 45-aircraft fleet by 2030. Check details

United Arab Emirates (UAE)- based airline company Air Arabia announced on Sunday, 20 July 2025, that it has received approval from Saudi Arabia to establish a new low-cost carrier, according to an official social media post.

The company also disclosed that the new low-cost carrier will be based in Dammam, a major city in the eastern region of Saudi Arabia. 

“We're proud to announce that Air Arabia has been awarded to establish a new low-cost airline based in Dammam by Saudi Arabia’s @ksagaca. We thank #GACA for their trust and support. Stay tuned for more updates on this exciting new venture!” said the company in a social media post on platform X.

A low-cost carrier is a stripped-down version of a traditional full-service airline. The service provider does not include additional services in the ticket fare, resulting in cheap flight booking rates. This business model is used in the aviation sector around the world, helping airlines connect people from one city to another at an affordable rate.

A low-cost carrier usually has stricter baggage policies, and food and drinks are not complimentary or included in the ticket price. If a passenger wants to opt for one or more services, this extra service comes at an added cost. 

Fleet Size Plans

The local news portal Gulf News reported that Air Arabia plans to launch a 45-aircraft fleet by the year 2030.

The report also cited the Saudi General Authority of Civil Aviation, which stated that the UAE-based carrier was among an alliance of three other companies that won the bid to operate the new low-cost airline. 

Media reports suggest that the new low-cost carrier will operate both domestic and international flights to and from the King Fahd International Airport in Dammam, Saudi Arabia. The flight operator aims to cater to 24 domestic routes and 57 international routes and transport 10 million passengers every year.

The local news portal also reported that the launch of the low-cost airline is expected to create more than 2,400 direct job opportunities and raise the service quality across the Saudi Arabian aviation market.

India-based IndiGo, Air India Express, SpiceJet, Akasa Air, and the European Ryanair are a few other examples of popular low-cost airline operators around the world who transport millions of people at an affordable rate in comparison to a full-service carrier, which comes at a premium cost.