AirAsia Eyes Saudi Expansion With Riyadh, Dammam Routes

AirAsia parent Capital A has identified Saudi Arabia as a “top priority market” for expansion, beginning with new routes from Kuala Lumpur to Riyadh and Dammam and increased frequencies to Jeddah.

The move is part of the group’s broader Middle East growth strategy, which includes strengthening air links between Southeast Asia and the Gulf region, launching digital travel services, expanding cargo operations and offering aircraft maintenance support. In addition to the planned Kuala Lumpur routes, potential connections from Bangkok and Jakarta to Riyadh are also being evaluated.

“I am absolutely blown away by what’s happening in Saudi Arabia—the cultural shift, the transformation in people’s lives, and the sheer scale of ambition is truly mind-blowing,” Capital A CEO Tony Fernandes says.

AirAsia’s long-haul affiliate AirAsia X has served the Saudi market since February 2013 with flights between Kuala Lumpur and Jeddah. The airline last operated the 4,388-mi. (3,813-nm) route in April and plans to resume up to 6X-weekly flights in July using Airbus A330-300 aircraft. Service to Madinah is also scheduled to restart in July with two flights per week.

Capital A says schedules for the planned Kuala Lumpur–Riyadh and Kuala Lumpur–Dammam routes will be “announced in due course.” However, CEO Tony Fernandes sees strong potential for growth in traffic between Southeast Asia and Saudi Arabia, driven in part by robust demand for religious travel.

“We believe the new Riyadh route is projected to serve close to one million two-way passengers by 2026 and more than seven million by 2030, reflecting strong demand for increased connectivity between Asean and the Gulf region,” he says.

According to OAG Schedules Analyser data, Malaysia Airlines and Saudia are currently the only carriers operating nonstop flights between Malaysia and Saudi Arabia, offering a combined 14,600 two-way weekly seats. However, capacity is expected to nearly triple in the coming weeks to 39,000 seats to accommodate increased demand during the Hajj season. Batik Air Malaysia, along with AirAsia X, is also set to resume flights as part of this seasonal expansion.

O&D traffic between Malaysia and Saudi Arabia reached approximately 816,000 two-way passengers in 2024, representing a year-on-year increase of nearly 28%, according to Sabre Market Intelligence data. Malaysia ranked as the 13th-largest outbound market from Saudi Arabia, while Saudi Arabia was the 12th-largest outbound market from Malaysia.

During recent meetings with Saudi Arabia’s Investment Ministry, General Authority of Civil Aviation and Transport Ministry, Capital A also explored strategic partnerships in airline services, logistics, aircraft maintenance and Red Sea tourism development.

The group says its Teleport business is working with Saudi logistics hubs and free-trade zones to establish cargo corridors between Asia and the Middle East, while aircraft maintenance and engineering arm Asia Digital Engineering is assessing opportunities to set up line maintenance facilities at key Saudi airports.

“We have so many projects we’re excited to embark on from logistics to aircraft engineering. We’re ready to grow with our brothers and sisters in Saudi Arabia,” Fernandes adds.

Capital A’s planned expansion in Saudi Arabia aligns with the kingdom’s Vision 2030, which targets 300 million air passengers and 150 million tourists annually by the end of the decade. Speaking to Routes at Routes Asia 2025, Saudi Air Connectivity Program CEO Majid Khan identified Malaysia as a priority market for the country’s route development support scheme, alongside Thailand, China, South Korea and Japan.

Recent successes include the launch of China Southern Airlines’ service between Beijing Daxing and Riyadh in April, followed by China Eastern Airlines’ inaugural flights between Shanghai Pudong and Riyadh later the same month.