Riyadh Air, the new national carrier of the Kingdom of Saudi Arabia, has established a five-year strategic partnership with SATS Saudi Arabia Company (SATS SA), which is a subsidiary of SATS Ltd (SATS). This collaboration aims to deliver comprehensive cargo handling services at key airports throughout the Kingdom.
The agreement encompasses significant cargo operations at the Riyadh Air hub located at King Khalid International Airport (RUH), with additional support at King Fahd International Airport (DMM) in Dammam and King Abdulaziz International Airport (JED) in Jeddah. Under this partnership, SATS Saudi Arabia will also enhance world-class hub management capabilities for Riyadh Air, positioning Riyadh as a premier regional cargo hub. This directly aligns with Saudi Arabia’s Vision 2030 goal of managing 4.5 million tons of air cargo on an annual basis.
Adam Boukadida, chief financial officer at Riyadh Air, stated, “This partnership with SATS Saudi Arabia marks a pivotal milestone in Riyadh Air’s journey to become a leading global carrier. By leveraging SATS’ advanced cargo handling capabilities and global network, we are laying a strong foundation to build a world-class air cargo offering from day one. This collaboration enables us to deliver operational excellence, high-value logistics solutions, and strategic connectivity across key global trade lanes – directly supporting Saudi Arabia’s Vision 2030 aspirations to position the Kingdom as a premier global logistics hub.”
Bob Chi, CEO of Gateway Services Asia Pacific, SATS Ltd., remarked, “We are honoured that Riyadh Air has selected SATS as a trusted partner for its ambitious cargo growth journey. This partnership represents strategic alignment between Riyadh Air’s ambition to connect over 100 destinations globally by 2030 and our commitment to provide our customers with world-class air cargo solutions.”
Advanced technological enhancements
As part of the agreement, SATS Saudi Arabia will deliver comprehensive dedicated cargo handling services at its existing 60,000 square-metre Riyadh (RUH) airfreight terminal. This facility boasts state-of-the-art amenities, including specialized zones for pharmaceuticals, e-commerce, live animals, valuables, and dangerous goods. This partnership grants Riyadh Air immediate access to SATS’ extensive global network of over 225 stations, supported by more than 250 airline partners and leading freight forwarders. The hub management operations will feature centralized cargo and security control centers to facilitate real-time operational oversight.
These operations will utilize SATS’ established hub management expertise, ensuring seamless coordination of cargo connections and serving as a focal point for routing shipments to their intended destinations within Riyadh Air’s expanding global network. This integrated approach will empower Riyadh Air to introduce a comprehensive suite of cargo products and services, positioning the airline for a strong competitive edge in both regional and global markets.
To support these hub operations, SATS Saudi Arabia will implement SATS’ proprietary COSYS+ Next Generation Cargo Management System, enabling real-time tracking and data-driven decision-making. This system will be augmented by advanced cargo digitization technology and automated truck dock management systems to further enhance operational efficiency. These technological advancements will be supported by the facility’s scalable infrastructure, ensuring robust capacity to facilitate Riyadh Air’s long-term growth ambitions.
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Global air cargo growth
This agreement underscores SATS’ expanding presence in the critical Middle East air cargo market and highlights its role as a trusted enabler for leading global airlines and logistics players. Riyadh Air’s dedication to providing world-class cargo services and establishing Riyadh as a flourishing hub in the global logistics landscape is exemplified through this strategic partnership.
Furthermore, this collaboration aligns with a period of rapid growth in global air cargo volumes, driven by increasing e-commerce demand and global supply chain diversification. In 2025, the International Air Transport Association (IATA) projects that air cargo volumes will reach approximately 69 million tons, reflecting a modest rise of 0.6 percent from 2024. However, this figure falls short of the previous forecast of 72.5 million tons. Additionally, revenues are expected to decline by 4.7 percent, totaling $142 billion.
While global demand saw a slight year-on-year increase of 0.8 percent in June, notable regional disparities were noted. Saudi Arabia’s strategic geographic location, linking Asia, Africa, and Europe, further enhances Riyadh Air’s potential to take advantage of these trends by offering improved connectivity and efficiency.
Major airports account for 82 percent of national air traffic
Moreover, air cargo in the Kingdom increased 34 percent to over 1.2 million tons in 2024, with 1.17 million tons being managed by the three largest airports: King Khalid International Airport in Riyadh, King Abdulaziz International Airport in Jeddah, and King Fahd International Airport in Dammam.
The four primary airports in Riyadh, Jeddah, Dammam, and Madinah accounted for 82 percent of the total air traffic. During the recent Hajj season, which spanned from May 9 to July 21, air traffic experienced a notable surge, with 1.5 million pilgrims arriving in the Kingdom, representing 40 percent of total international travelers during that timeframe.
According to British global travel data provider OAG, the Jeddah-Riyadh route recorded the largest increase in capacity globally among domestic routes in 2024, while the Cairo-Jeddah route ranked as the second busiest international route worldwide.
The Cairo (CAI) to Jeddah (JED) route logged 5.5 million seats. The airline capacity on this route grew 14 percent compared to 2023 levels and 62 percent relative to 2019 levels, maintaining its second position achieved in 2023. The Dubai (DXB) to Riyadh (RUH) route also saw significant growth, with seat capacity reaching 4,306,599. This route exceeded 2023 levels by 8 percent and surpassed 2019 levels by 37 percent. It has retained its status as the 6th busiest international airline route since 2023.
