CEO Bander Al Mohanna has confirmed that Flynas, Saudi Arabia’s budget airline, intends to launch an Initial Public Offering (IPO) later this year, publicly listing its shares on the Tadawul stock exchange.
Speaking at the Airline Economics Growth Frontiers Conference in Riyadh, Al Mohanna also announced Flynas’ plans to acquire 30 widebody aircraft to enhance its route network. The company has already issued a request for proposal (RFP), with the winning bid expected to be announced and finalised later this year.
Partially owned by Kingdom Holding, the airline currently operates a fleet of 64 Airbus aircraft and conducts 1,500 flights weekly.
With the IPO on the horizon, Flynas, founded in 2007, has disclosed its financial results for the first time. Remaining profitable every year since 2015 (except during the COVID-19 pandemic), the company reported a 32 percent annual revenue increase, reaching SAR6.3B ($1.68 billion) in 2023.
These IPO plans coincide with Saudi Arabia’s vigorous expansion of its aviation sector, aiming to accommodate 330 million passengers and enhance connectivity to 250 destinations by 2030.
Last year, Flynas enlisted the services of Goldman Sachs Group, Morgan Stanley, and Saudi Fransi Capital for its potential IPO.
According to Saudi’s General Authority of Civil Aviation (GACA), flight numbers rose by 16 percent in 2023 to 814,995, serving 148 destinations. Passenger numbers surged by 26 percent to 112 million. Low-cost carriers accounted for 44 percent of these passengers, nearly doubling their market share to 32 percent.
