Gulf airlines expand through a disrupted regional market

Saudi Arabia is backing a new budget airline based in Dammam, operated by an Air Arabia-led consortium, alongside expansion of King Fahd International Airport. Airbus A320 services are planned for domestic destinations including Riyadh, Jeddah and Madinah.

The long-haul contest is moving too. Emirates won a Berlin slot, strengthening its Europe–Asia network, and says it expects to restore prewar seat capacity by the end of 2026 if the conflict subsides. That remains a conditional recovery target.

Etihad is adding more than 20 aircraft and routes across Europe, Africa and China while some rivals have pulled back. Semafor describes carriers using a period of disruption to defend and expand their networks, with regional security still determining how fully those plans can translate into service.