Robust Economic and Popular Growth
The Kingdom of Saudi Arabia has the largest economy in the GCC with the highest population and a young demographic. These favorable demographics will drive increased consumption, including spending on air travel, providing opportunities for organic growth.
Vision 2030 and Aviation Strategy Opportunities
The Kingdom's Vision 2030 and Aviation Strategy aims to boost the aviation sector and transform the Kingdom of Saudi Arabia into a top global tourism destination, representing a material upside for carriers connecting the Kingdom with international passengers.
Major Attractions, Events and Infrastructure Developments
Upcoming projects like NEOM and Qiddiya, global marquee events like Expo and World Cup and new airports, namely King Salman International Airport in Riyadh, will further drive growth in the aviation sector.
Aviation Market Potential
Substantial growth opportunities in domestic and international air travel, with current seat capacities far below global benchmarks.
Concentrated Market
flynas operates in a market with only three active players and only one other Saudi LCC, reducing direct competition.
Significant, Modern Fleet Backed by Larger Orderbook
Compared with other regional LCCs, flynas has a young fleet serving international and domestic markets with a substantial orderbook.
Serving High-Demand Routes with Primarily Point-to-Point Traffic
flynas is strategically positioned on key domestic and regional routes, where the majority of traffic is point-to-point, reflecting strong, essential, and irreplaceable demand.
Differentiated Offerings
flynas offers unique products like premium economy, frequent-flyer programs ‘naSmiles’, and holiday packages ‘nasholidays’, setting it apart from local and regional competitors.
Growth in LCC Penetration
LCC market share is expected to grow significantly, as such, LCCs are set to benefit from most of the growth expected in domestic travel. flynas is well-positioned to capitalize on this trend and increase its market share.
Strong Position in all key Domestic Routes, developing along four bases in the most populated urban areas in KSA
Growth in overall KSA demand (PAX) is outpacing supply (seat capacity), resulting in high load factor. flynas' differentiated product offering results in capturing additional market share in a growing pax market.
- In 2024G, the gap between seat capacity and PAX decreased to 24% (vs. 31% in 2019G).
- In 2019G, flynas' market share was 10% (76 million PAX); in 2024G,. flynas' market share reached 15% (14.7 million PAX)
flynas is the only independent LCC serving domestic routes
with lead/co-lead on 6 out of the top 15 domestic routes (vs. flyadeal, a subsidiary of Saudia, itself fully owned by the KSA Government) and an overall market share of 23%.
- Jeddah-Dammam: 29% market share
- Riyadh-Jazan: 25% market share
- Dammam-Abha: 50% market share
- Riyadh-Taif: 17% market share
- Riyadh-Dammam: 22% market share
- Riyadh-Nairan: 23% market share
Leading Position on the Busy GCC and MENA Routes
flynas is the leading or one of the top two LCC airlines on most of the busiest routes from Saudi Arabia to the GCC, and the leader on the two busiest routes (Riyadh-Dubai and Jeddah-Dubai). The Company is also in a dominant position in connectivity with the rest of MENA, ranking as the leading LCC for the top five international routes from the Kingdom to MENA.
- Riyadh - Dubai: 28% market share
- Jeddah - Dubai: 17% total market share
- Jeddah - Cairo: 14% market share
- Riyadh - Cairo: 27% market share
- Madinah - Cairo: 9% market share
- Jeddah - Istanbul: 10% market share
Uniquely Positioned to Capitalize on Religious Travel
Through its Hajj and Umrah segment, it taps into the high-demand market for Haji and Umrah pilgrimages, benefiting from the allocation of 50% of Hajj charter flight capacity to Saudi carriers due to bilateral agreement with the government.
Hajj and Umrah Segment Fleet and Coverage:
flynas serves 13 Hajj markets and 3 Umrah markets in 9M 2024G, utilizing wet-lease and dry-lease wide-body aircraft, along with its scheduled LCC network throughout the year (for Umrah operations).
Modern, Young and Uniform Fleet
flynas operates an all-Airbus fleet, including A320, A320neo, A320ceo, and A330 aircraft, with a uniform cabin layout to balance seat density and customer experience. A320 aircraft offer 5% premium economy seats on select international routes. With an average fleet age of 4.0 years, flynas has the youngest fleet among publicly listed LLC peers.
Operational Excellence
The Company has been operating for 17 years, boasting high operational performance and compliance. It has continued to improve its on-time performance (“OTP”), a key operational metric, improved customer satisfaction scores, and has won numerous awards.
- OTP performance as of 9M 2024G was 88%, compared to 83% in 9M 2023G
- Net promoter score (NPS), a measure of customer satisfaction. has increased to 33 in 9M 2024G, compared to 16 in 9M 2023G.
- 7 consecutive Skytrax awards for the best Middle Eastern LCC (2017G-2024G).
- Awarded World Travel Awards for the Middle East's leading LCC for 10 consecutive years (2015G to the first quarter of 2024G).
Record Financial Performance:
The Company achieved an all time high revenue of SAR 7.56 billion in 2024G, up 19% as compared to SAR 6.4 billion in 2023G.
Gross profit reached SAR 1.468 billion, a significant increase of 62% YoY, while operating profit achieved just over SAR 1.045 billion, up 20% YoY
The Company also recorded EBITDA of SAR 2.18 billion in 2024G and a margin of 28.8%, which is up from SAR 1.66 billion and 26.1% margin in FY 2023G.
Net profit in 2024G hit a record SAR 434 million, up 8% on SAR 401 million in 2023G and more than double from 2022G.
Innovation in Revenue Management
The Company utilizes an AI-driven, machine-learning revenue management system with dynamic pricing on all flights. This strategy enhances competitive advantage by making pricing unpredictable for competitors and optimizing revenue per seat during peak and low demand periods.
Enhanced Customer Experience via App
flynas’s app, with 3.8 million monthly users, serves as a sales and engagement platform, offering ticket purchases, flight management, online check-in, and ancillary services. It supports various payment methods, including postpaid options like Tabby and Tamara, promotional vouchers and ‘naSmiles’.
Diversity and Saudization Initiatives
The Company is committed to empowering local talent, with a strong focus on the Saudization of its workforce, including copilots and flight dispatchers.
- As of 30 September 2024, the Company successfully achieved 100% Saudization of both co-pilots and flight dispatchers.
- In addition, Saudi nationals represented over 52% of the Company's total workforce, while women accounted for 28% of its employees.
Commitment to ESG and Carbon Reduction
As the largest operator of A320 aircraft in MENA, the Company focuses on fleet efficiency and environmental impact. The CFM-Leap powered engines, comprising 87% of flynas’ fleet in as of FY 2024G, reduces CO2 emissions by c.10% and has a 15-20% lower fuel flow compared to the other narrow-body aircraft, A320ceo. Direct flight routing and other practices further reduce fuel consumption and emissions. Furthermore,flynas leads in sustainability, being the first LCC in the Middle East to join the United Nations Global Compact and the World Tourism Organization.
Community and Cultural Initiatives
The Company actively contributes to community efforts, raising SAR 2 million for children with disabilities and hosting aviation forums. It also promotes Saudi culture through initiatives like the 'Year of Saudi Coffee' and 'Year of Arabic Calligraphy'.
Experienced Leadership
The Company’s management team brings a wealth of experience and sector expertise, ensuring a strong foundation for future growth and success.
Cumulative Industry Experience
The Executive Management team has over 160 years of combined experience across operational and financial functions in the aviation sector.
Commitment to Excellence
The leadership's long tenure and deep industry knowledge are key drivers in maintaining high standards and positioning flynas for ongoing growth and transformation.