Saudia Group and Airbus Sign the Largest Aircraft Deal in Saudi Aviation History, for 105 A320neo Family Narrow-Bodies

(Riyadh, Saudi Arabia) State-owned Saudia Group, owner of Saudia Airlines and budget carrier flyadeal, placed an order for 105 Airbus (AIR.PA) narrow-body aircraft during the first day of the Future Aviation Forum 2024 in Riyadh yesterday (May 20); per Reuters, the order marked a “bounce-back” for Airbus just months after Boeing (NYSE: BA) had been tipped to win more Saudi business.

Rendering of the future Saudia Airlines and flyadeal Airbus A320 family aircraft courtesy of Airbus.

Yesterday’s deal brings Airbus’s order backlog for the Saudia Group to 144 A320neo family aircraft, according to today’s press release from Airbus.

According to Saudia Group’s Director General H.E. Engr. Ibrahim Al-Omar, the order for 12 A320neo and 93 A321neo single-aisle aircraft is the largest in Saudi Arabia’s history, per Reuters.

Saudia Airlines will receive 54 of the A321neo jets, while flyadeal is set to acquire 12 A320neos and the remaining A321neos.

"Saudia has ambitious operational objectives to meet growing demand,” Al-Omar said. “We are increasing flights and seat capacity across our existing 100+ destinations on four continents, with plans for further expansion. The progress of Saudi Vision 2030 is attracting more visits, tourists, entrepreneurs, and pilgrims each year. This motivated our decision to secure this significant deal, which will create jobs, increase local content, and contribute to the national economy."

Per Airbus, Saudi Arabia is creating “unprecedented opportunities for global aviation through the Saudi National Tourism Strategy, which targets more than 150 million tourists by 2030.”

Although the value of the deal has not been disclosed by Saudia nor Airbus, organizers of the Future Aviation Forum pegged it close to $19 billion, according to Reuters.

Saudia Group said its planes would be delivered in the first quarter of 2026 through 2032, according to Reuters.

While Airbus does not publish its aircraft prices, the A321neo was worth close to $130 million each at list prices released in 2018; Flyadeal CEO Steven Greenway said Saudia got the order at a discount, as is typical in the industry, per Reuters.

In November, Saudia Arabia’s newest airline Riyadh Air said that it was weeks away from placing a large narrow-body order, which Bloomberg News reported involved the Boeing 737 MAX; months later, no such order has surfaced, and “yesterday’s announcement placed Airbus firmly in the spotlight,” per Reuters.

Per Airbus, the A320 Family is the world’s most popular single aisle aircraft, having won over 18,000 orders from over 300 customers in all markets.

In today’s press release, Airbus noted that as with all Airbus aircraft, the A320 aircraft family is able to operate with up to 50% sustainable aviation fuel (SAF); Airbus aims for all of its aircraft to be capable of operating with up to 100% SAF by 2030.