Saudi Arabia’s Landmark Plane Deal Goes to Airbus, Snubbing Boeing

In a historic move for Saudi Arabia’s aviation sector, the national airline Saudia has placed an order for 105 Airbus aircraft, marking the largest aviation deal in the country’s history. This deal represents a significant victory for Airbus over its beleaguered American competitor, Boeing.

Ibrahim Al-Omar, the director general of Saudia Group, which owns Saudia airline and the low-cost carrier Flyadeal, announced the landmark agreement at the Future Aviation Forum in Riyadh on Monday. He confirmed that the first deliveries are expected in the first quarter of 2026.

“The Saudia Group announces today the largest deal in the history of Saudi aviation,” Al-Omar declared during his speech, highlighting the scale and significance of the contract with Airbus.

Currently, Saudia Group’s fleet includes 93 Airbus and 51 Boeing aircraft. The new order adds to their existing backlog of 39 Airbus planes, further strengthening their relationship with the European manufacturer. However, Al-Omar did not clarify whether the deal’s size or value made it the largest in Saudi aviation history. Organizers of the Future Aviation Forum estimated the deal at $19 billion, though Saudia Group and Airbus did not provide specific comments on the deal’s value.

Al-Omar emphasized that this massive order aligns with Saudi Arabia’s Vision 2030 initiative, which aims to diversify the country’s economy beyond oil, with tourism as a key focus. “Saudia has ambitious operational objectives to meet growing demand,” he noted. “We are increasing flights and seat capacity across our existing 100-plus destinations on four continents, with plans for further expansion.” The kingdom aims to attract 150 million tourists annually by 2030, as per its National Tourism Strategy.

A Blow to Boeing
The news comes at a challenging time for Boeing, which is under intense scrutiny due to a series of safety failures, including a mid-air fuselage blowout in January. These incidents have led to multiple investigations, executive changes, and a pledge to improve its practices.

Boeing has struggled since the fatal crashes of its 737 Max aircraft in 2018 and 2019, which resulted in a 20-month grounding of its best-selling plane. The COVID-19 pandemic further exacerbated Boeing’s difficulties, causing significant losses for airlines globally. Since 2019, Boeing has reported adjusted losses exceeding $31 billion and has seen its stock price drop by nearly 28% this year alone.

Despite having a backlog of over 5,600 commercial jets valued at $529 billion, Boeing’s ongoing quality issues have hindered its ability to produce planes quickly enough to turn a profit. In contrast, Airbus reported an order backlog of almost 8,600 aircraft at the end of 2023 and posted a profit of €3.8 billion ($4.1 billion) for the year.

This major order from Saudi Arabia underscores Airbus’s current market strength and Boeing’s ongoing challenges, highlighting a significant shift in the competitive landscape of the global aviation industry.