Riyadh Air has formally entered the global air freight market with the launch of its dedicated cargo service, Riyadh Cargo, marking another step in the Saudi carrier’s rapid build-out ahead of full passenger operations. The airline said the new unit will initially rely on the belly-hold capacity of its aircraft fleet, allowing it to move goods across international routes while scaling up a longer-term cargo strategy from its hub in the Saudi capital.The launch positions Riyadh Air alongside established Middle East carriers that have turned air cargo into a strategic pillar, particularly as global supply chains adjust to shifting trade patterns, geopolitical risks and the growing demand for fast, reliable transport of high-value goods. Company officials described the move as a phased entry, designed to balance early market participation with disciplined investment.
Riyadh Cargo will operate through the widebody aircraft already ordered by the airline, which has commitments for more than 120 jets from Boeing and Airbus. These aircraft are expected to provide substantial belly-hold capacity once they begin service, enabling the transport of pharmaceuticals, perishables, e-commerce shipments and time-sensitive industrial components. The airline said this approach avoids the immediate cost of dedicated freighters while still offering global reach.
The decision reflects broader trends in the aviation industry, where belly cargo has regained importance after pandemic-era disruptions exposed vulnerabilities in maritime logistics. While air freight volumes cooled from the extraordinary peaks seen during Covid-19, industry data show steady demand for premium cargo services tied to e-commerce growth, healthcare logistics and just-in-time manufacturing. Carriers with modern widebody fleets and strong hub connectivity have been best placed to capture these flows.
Saudi Arabia’s logistics ambitions provide important context for the launch. The kingdom has set out plans to become a global transport and logistics hub linking Asia, Europe and Africa, backed by large investments in airports, ports, rail and digital infrastructure. Riyadh Air is a central element of that strategy, intended to complement existing operators and expand the country’s aviation footprint. Cargo services are seen by policymakers as critical to attracting multinational manufacturers, distribution centres and pharmaceutical companies.
Riyadh Cargo is expected to integrate closely with the airline’s passenger network as routes come online. Although Riyadh Air has yet to carry its first passenger, it has announced an expanding list of destinations across Europe, Asia and North America as it prepares for commercial operations. Cargo capacity on those routes could give exporters and importers additional options, particularly for goods moving to and from the Gulf region.
Industry analysts note that entering the cargo market early may help Riyadh Air establish relationships with freight forwarders, logistics firms and customs authorities before passenger volumes ramp up. Belly-hold cargo often depends on such partnerships, as well as on reliable ground handling and cold-chain facilities. Saudi authorities have been upgrading cargo villages and customs processes at King Khalid International Airport, aiming to reduce clearance times and improve efficiency.
Competition, however, will be intense. Established Gulf carriers already operate sophisticated cargo divisions with global networks and, in some cases, dedicated freighter fleets. They benefit from scale, long-standing customer relationships and integrated logistics platforms. For Riyadh Cargo, differentiation may depend on pricing, reliability and the ability to align cargo schedules closely with passenger operations to maximise capacity utilisation.
The airline’s leadership has emphasised a disciplined rollout rather than aggressive expansion. By starting with belly cargo, Riyadh Air can test demand on individual routes, adjust capacity and refine its product offering before considering dedicated freighters or specialised services. This approach also aligns with environmental considerations, as utilising existing aircraft space avoids the emissions associated with operating additional planes.
From a commercial standpoint, cargo revenues can provide a valuable buffer against passenger market volatility. Airlines globally have highlighted the stabilising effect of freight income during downturns, when passenger demand softens but essential goods continue to move. For a start-up carrier, diversified revenue streams may help smooth the path to profitability.
Topics
Spotlight