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Flynas Secures $134 Million Loan to Finance Airbus Deliveries

Flynas Secures $134 Million Loan to Finance Airbus Deliveries
Saudi Arabian budget carrier Flynas has obtained a SAR504 million ($134 million) sharia-compliant loan from Saudi Awwal Bank to support the financing of its forthcoming Airbus aircraft deliveries. The loan facility, disclosed in a statement to the Saudi stock exchange on Tuesday, is intended to facilitate the acquisition of Airbus A320neo jets. This forms part of Flynas’s firm order for 195 narrow-body aircraft, which includes 159 A320neo and 36 A321neo models, underpinning the airline’s strategic expansion plans.
Loan Structure and Strategic Context
The 12-year financing arrangement is secured by a comprehensive package of guarantees, encompassing promissory notes, aircraft mortgages, insurance and reinsurance assignments, as well as warranties covering airframes and engines. Saudi Awwal Bank, also listed on the Saudi stock exchange, provided the facility amid Flynas’s ongoing efforts to grow its operational fleet and broaden its route network.
Flynas’s substantial investment in Airbus aircraft occurs against a backdrop of shifting dynamics within the global aviation industry. Recent data indicates that Airbus is set to surpass Boeing in narrow-body aircraft deliveries, thereby increasing its market share in this vital segment. This evolving competitive landscape may influence Flynas’s procurement costs and delivery timelines, as manufacturers adjust pricing and strategies to either maintain or reclaim market dominance. Such developments are likely to invite closer scrutiny of Flynas’s financial position and strategic decisions, particularly as Boeing and other rivals respond with competitive offers.
Operational Growth and Financial Performance
Operationally, Flynas expanded its fleet to 71 aircraft during the first half of 2025, including the delivery of three A320neo jets in the second quarter. The airline currently serves 146 routes to 74 destinations across 34 countries, reflecting its ambitious growth trajectory.
From a financial perspective, Flynas reported a significant reversal from a net profit of nearly SAR239 million in the second quarter of 2024 to a loss of SAR862.5 million this year. This downturn is primarily attributed to non-recurring IPO-related expenses exceeding SAR1 billion. Despite this, the company’s stock closed 2 percent lower at SAR76.20 on Monday but remains up 77 percent since its June listing. Major shareholders include National Aviation Services Co, holding a 28.9 percent stake, and Kingdom Holding Co, which owns 27.4 percent.
As Flynas advances with its fleet expansion amid a rapidly evolving aircraft market, its capacity to manage financial pressures and leverage favorable delivery terms will be closely monitored by investors and industry analysts.

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