Al -Jazeera Capital recommends an increase in investment in “flynas”: rapid and profitable growth

Al -Jazeera Capital has issued its recommendation to increase the centers in the arrow of “flynas” listed and traded in the main Saudi market “Tadawul”, noting the strong growth capabilities that the company enjoys in light of the transformation plan witnessed by the Saudi aviation sector within the Kingdom’s 2030 vision.

According to the report, flynas is expected to benefit from the momentum of government spending of $ 100 billion to expand the sector, providing it with structural opportunities for growth amid expectations to double the number of passengers to 330 million by 2030.

Fast expansion opportunities that support financial performance

In light of the flying expansion plans, the number of aircraft is expected from 61 to 108 aircraft by 2029, which is reflected in the increase in the operational capacity at an annual compound rate of 18%.

Al Jazeera Capital expected revenue growth by 13.9% annually to keep pace with high demand, especially in international travel and religious tourism.

Despite expectations of the return of the return per kilometer available (from 0.270 to 0.226 riyals), the efficiency of operations will contribute to maintaining good levels of profitability. For example, profit margins are expected to rise before benefits, taxes, zakat, consumption and firefighting to reach its peak at 30.9% in 2028, before settling at 30% in 2029.

As for the level of net profitability, Al -Jazeera Capital expects an annual growth of 17.8%, bringing the net profit to about 985 million Saudi riyals by 2029, an increase of 434 million riyals in 2024.

Strategic connection to major projects and support for religious tourism

In addition to the financial and operational expansion, flynas is based on a strategic location inside the Kingdom, where its services reach about 80% of the Saudi population, and contribute to linking them to major national projects such as “NEOM” as well, which enhances the company’s activity in the Hajj and Umrah sector its position in supporting religious tourism, with expectations of the growth of the number of pilgrims by 12% annually until 2030.

Although Saudi companies have the right to operate 50% of international pilgrimage flights, the current market share of flying people is much lower, indicating an opportunity that has not yet been exploited, the company seeks to invest in the coming years.