AirAsia Capital A Eyes Saudi for Major Route Expansion
Capital A, parent company of AirAsia, has identified Saudi Arabia as a top priority market for expansion, kicking off with new routes from Kuala Lumpur to Riyadh and Dammam, and boosted frequencies to Jeddah. This move forms part of Capital A’s broader Middle East strategy, which includes launching digital travel services through its Teleport arm, expanding cargo corridors and offering aircraft maintenance via Asia Digital Engineering. In addition to Kuala Lumpur, potential Bangkok–Riyadh and Jakarta–Riyadh services are under evaluation, underlining robust demand from the ASEAN market to the Gulf region.
Capital A CEO Tony Fernandes praised Saudi Arabia’s rapid transformation, saying he is “absolutely blown away by what’s happening… the sheer scale of ambition is truly mind-blowing.” He projects the new Kuala Lumpur–Riyadh route will carry nearly one million two-way passengers by 2026 and more than seven million by 2030, driven partly by strong demand for religious travel. According to OAG Schedules Analyser data, Malaysia Airlines and Saudia currently operate a combined 14,600 two-way weekly seats between the two countries, a capacity set to nearly triple to 39,000 seats in the coming weeks to accommodate the Hajj season. Batik Air Malaysia and AirAsia X will also resume seasonal services.
AirAsia X, the long-haul affiliate, has served the Saudi market since February 2013 with nonstop flights between Kuala Lumpur and Jeddah. The carrier last operated the 3,813-nautical-mile route in April and plans to resume up to six weekly flights in July using Airbus A330-300 aircraft. Service to Madinah will restart in July with two weekly flights, covering Saudi Arabia’s key gateway cities.
Origin-destination traffic between Malaysia and Saudi Arabia reached approximately 816,000 two-way passengers in 2024, a nearly 28 percent increase year-on-year, according to Sabre Market Intelligence data. Malaysia ranked as the thirteenth-largest outbound market from Saudi Arabia, while Saudi Arabia was the twelfth-largest outbound market from Malaysia, underscoring the strength of bilateral travel. Capital A’s discussions with Saudi Arabia’s Investment Ministry, the General Authority of Civil Aviation and the Transport Ministry have focused on deepening ties and securing strategic partnerships across multiple sectors.
Capital A’s Teleport logistics division is collaborating with Saudi logistics hubs and free-trade zones to establish freight corridors connecting Asia and the Middle East, while its aircraft maintenance arm, Asia Digital Engineering, is assessing opportunities for line maintenance facilities at major 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 added.
The expansion aligns with Saudi Vision 2030, which targets 300 million annual air passengers and 150 million tourists by the end of the decade. At Routes Asia 2025, CEO Majid Khan of the Saudi Air Connectivity Program highlighted Malaysia, Thailand, China, South Korea and Japan as priority markets supported by route development incentives. Recent successes include China Southern Airlines launching Beijing Daxing–Riyadh service in April, followed by China Eastern’s Shanghai Pudong–Riyadh flights, reflecting the kingdom’s growing appeal as a global aviation hub.
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