Saudi Arabia’s low-cost carrier flynas exceeded analysts’ expectations in the third quarter of 2026, reporting a net profit of SAR 27 million ($7.2 million) despite a sharp increase in fuel costs and operational challenges linked to the regional conflict.
The airline’s net profit declined 78% year-on-year from SAR 120 million in Q3 2025, but significantly outperformed the average forecast of a SAR 10.8 million loss, according to a Bloomberg survey of four analysts.
Revenue increased by 6% to SAR 2.23 billion, supported by improved revenue per unit of capacity, according to the company’s financial disclosure on the Saudi Exchange (Tadawul).
Fuel Costs Pressure Profitability
flynas reported an 11% increase in the cost of revenue to SAR 1.92 billion, primarily driven by a 51% surge in fuel expenses to SAR 666 million. Higher jet fuel prices following the outbreak of the regional conflict in March 2026 continued to weigh on profitability.
The year-on-year comparison was also affected by SAR 33 million in sale-and-leaseback gains recorded in Q3 2025, which did not recur this year.
Revenue from the low-cost airline segment grew by 9% to SAR 2.17 billion, while Hajj-related revenue declined by 67% to SAR 19 million due to differences in the timing of the pilgrimage season.
Operational Disruptions Cloud Q4 Outlook
flynas warned that operational disruptions affecting Saudi airports since October could significantly impact its fourth-quarter results.
The airline reported disruptions following the closure of King Khalid International Airport in Riyadh on October 10, before its partial reopening on October 25, with operations gradually resuming.
In response, flynas has adjusted its flight network, implemented cost-control measures, and prioritized liquidity preservation.
The company ended September with SAR 3.4 billion in cash and bank deposits, alongside additional undrawn committed credit facilities, providing financial flexibility to manage ongoing disruptions.
Looking ahead, flynas expects a significant impact on Q4 performance and has maintained the suspension of its full-year 2026 financial guidance due to continued uncertainty.
The airline reaffirmed its commitment to passenger and employee safety, liquidity management, and the gradual restoration of flight operations as airport capacity becomes available.
