flynas Buys 10% of Swissport Saudi Arabia for SAR 50M

Saudi carrier flynas has agreed to acquire a 10% equity interest in Swissport Saudi Arabia Limited for a fixed consideration of USD 13,333,333 — about SAR 50 million — plus a limited variable amount calculated under the signed agreements. The deal was disclosed as an issuer announcement on the Saudi Exchange (Tadawul) under flynas' ticker 4264.

Alongside the equity purchase, flynas signed a ground handling agreement making Swissport Saudi Arabia its exclusive ground handling partner across its domestic network in the Kingdom. The agreement runs from 6 March 2027 to 5 March 2032, with an option to renew for a further five years by mutual agreement.

Under a shareholders' agreement, flynas holds a call option to acquire an additional 10% stake in Swissport Saudi Arabia upon renewal of the ground handling agreement, which could raise its potential equity holding to 20%. The partnership is described as a long-term equity and commercial arrangement aimed at expanding Swissport's share of the Saudi ground handling market to around 40%.

To make way for the new arrangement, flynas issued a termination notice on 6 September 2026 for its existing ground handling agreement with Saudi Ground Services Company, taking effect from 6 March 2027.

Why it matters

Annual purchases under the new agreement are expected to reach roughly 5% of flynas' revenue, based on its 2025 audited income statement, broadly in line with what it currently pays under the existing arrangement. The company said the deal is not expected to have any financial impact beyond normal operational purchases as a share of revenue.

flynas' disclosed revenues have grown steadily in recent years, reaching SAR 4.81 billion in 2021, SAR 6.36 billion in 2022, SAR 7.56 billion in 2023 and SAR 7.84 billion in 2024. For travelers, the move ties one of the Kingdom's largest low-cost carriers to a single ground handling partner across domestic airports over the next several years.

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