Gulf airlines muscle up, fending off European rivals - Semafor

Gulf airlines are coming out swinging after a brutal year, fending off opportunistic European rivals and instability at home. Nowhere is this clearer than in Dammam, where Saudi Arabia has ordered a new budget airline and an expansion of King Fahd International Airport. Run by an Air Arabia-led consortium, it will fly Airbus A320s on domestic routes to Riyadh, Jeddah, and Madinah.

In long-haul, Emirates won a coveted Berlin slot this week, strengthening its Europe-Asia foothold. Some European airlines have opened new Middle Eastern routes this year, which Emirates President Tim Clark called “a little bit sad,” and an attempt to exploit the Iran war. The Dubai carrier expects to restore full prewar seat capacity by the end of 2026, returning “hard and fast” if the conflict subsides. Abu Dhabi’s Etihad is taking the same muscular approach, adding more than 20 aircraft and new routes to Europe, Africa, and China as other long-haul carriers have pulled back.