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Delta CEO: Atlanta-Riyadh Route Links Two Dynamic Economies

Delta Air Lines CEO Ed Bastian speaks at a session during the Future Investment Initiative conference (Asharq Al-Awsat)
Delta Air Lines CEO Ed Bastian speaks at a session during the Future Investment Initiative conference (Asharq Al-Awsat)
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Delta CEO: Atlanta-Riyadh Route Links Two Dynamic Economies

Delta Air Lines CEO Ed Bastian speaks at a session during the Future Investment Initiative conference (Asharq Al-Awsat)
Delta Air Lines CEO Ed Bastian speaks at a session during the Future Investment Initiative conference (Asharq Al-Awsat)

Delta Air Lines Chief Executive Ed Bastian said that launching direct flights between Atlanta and Riyadh marks a strategic step that will open a new air corridor for business and investment between two dynamic economies and cultures, underscoring that the move will boost cross-sector partnerships and support multinational companies and their regional headquarters in Saudi Arabia under Vision 2030.

Speaking to Asharq Al-Awsat on the sidelines of the Future Investment Initiative (FII) in Riyadh, Bastian’s remarks came days after Delta announced plans to operate direct flights to Saudi Arabia, making it the first US carrier to operate nonstop routes to the Kingdom.

Bastian said the new route, driven by strong demand from business, tourism, and conference travel, reflects Delta’s full confidence in the Saudi market and serves as a key link connecting the financial and innovation ecosystems of the United States and the Kingdom.

He said Delta aims to establish broader network connectivity through an expected partnership with Riyadh Air, noting that the tie-up would bring together two forward-looking carriers offering seamless connectivity and shared loyalty benefits.

Bastian said Delta is proud to be the first US airline to announce direct flights to the Saudi capital, adding that the expansion aligns with Delta’s global connectivity strategy and its drive to grow in emerging markets. He said it is backed by investments in a modern fleet, digital transformation, and artificial intelligence to enhance efficiency and cut emissions.

Launch timeline and onboard experience

Bastian said the Atlanta–Riyadh service represents a strategic, opportunity-driven expansion, with Riyadh’s growth and ambition making it an attractive destination. The route is set to begin in October 2026, operating three times weekly using an Airbus A350-900 with four cabin classes.

While Riyadh is the starting point, he said the airline is open to future expansion in the Kingdom.

He expects strong US passenger demand for travel to what he described as a rising global hub, adding that Riyadh’s growth and ambition make it a compelling destination and that the new route will open new horizons for both business and leisure travelers.

Delta’s participation in FII

Highlighting Delta’s presence at the FII forum, Bastian said the company is proud to be the first US carrier to announce direct service to Riyadh. He described the city as vibrant and fast-growing, adding that Delta’s presence in the Kingdom reflects its commitment to global connectivity and support for the transformation underway under Vision 2030.

With the new Atlanta–Riyadh route, Bastian said Delta is taking a leading role in building a strategic bridge connecting two dynamic economies and cultures.

Expanding footprint in the Middle East

Bastian said Delta is entering an entirely new phase in the Middle East. He said this marks Delta’s first steps in Saudi Arabia and the start of a new chapter in its international expansion.

As Delta approaches the close of its first century, Bastian said the company wants its second century to be defined by global growth. Through strategic partnerships, including with Riyadh Air, Delta aims to build the foundation for long-term success based on connectivity, innovation, and premium service. The goal, he added, is to deepen its presence and deliver lasting value across the region.

Competing with Gulf carriers

Bastian said Delta competes in a region dominated by strong Gulf airlines through its core strengths—exceptional service, reliability, and customer care.

He described the expected partnership with Riyadh Air as a unique competitive proposition that unites two forward-looking carriers to offer seamless connectivity, shared loyalty benefits, and innovative experiences blending Delta’s long heritage with Riyadh Air’s digital-first approach.

Growing US-Middle East travel demand

Bastian said international travel demand has rebounded strongly since the pandemic, driven by growing interest across generations. He said the transformation taking place in Saudi Arabia is creating significant new reasons to visit, adding that Delta is preparing to meet that demand with premium service and smooth connections, particularly amid rising business travel expected to deepen cultural and economic exchange.

Financial and operational performance

On financial performance, Bastian said Delta posted record third-quarter revenue of $15.2 billion, with strong margins and diversified growth across premium travel and loyalty segments.

He said the carrier’s international expansion remains on a solid trajectory, with emerging markets such as Riyadh, Sardinia, and Hong Kong offering promising growth opportunities.

Industry outlook and technology

Looking ahead, Bastian said airfares are likely to stabilize at levels higher than before COVID-19 as travelers increasingly value premium experiences and view travel as a form of personal enrichment.

He said artificial intelligence is central to Delta’s innovation efforts, used in predictive technologies to enhance operations. The company has launched the Delta Concierge digital assistant to support personalized travel experiences.

Bastian said AI enhances human decision-making and does not replace the human touch of Delta’s more than 100,000 employees.

Efficiency and cost reduction

On cost control, Bastian said Delta is cutting seat costs by renewing its fleet with next-generation aircraft such as the A350-1000, which are up to 20% more fuel-efficient. He also cited digital transformation and improved crew productivity as key efficiency drivers.

He added that new aircraft deliveries—both narrow- and wide-body—will expand capacity and efficiency while larger jets deliver savings on maintenance and crew costs. Tools such as Delta’s internal Carbon Council and digital platforms are improving operations and reducing waste, lowering costs and supporting sustainability goals.

Bastian said Delta is managing delivery delays from Airbus and Boeing by optimizing its current fleet and maintaining flexibility in its order strategy.

He said the planned partnership with Riyadh Air extends beyond network connectivity to include broad cooperation in maintenance, training, and operational services, evolving into a long-term strategic alliance to support both carriers’ growth.

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Business

Yanbu Commercial Port Boosts Operational Efficiency by Serving 11 Vessels Simultaneously

The accomplishment builds on the vital role of Yanbu Commercial Port in strengthening Saudi Arabia's maritime transport system. (SPA)
The accomplishment builds on the vital role of Yanbu Commercial Port in strengthening Saudi Arabia's maritime transport system. (SPA)
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Yanbu Commercial Port Boosts Operational Efficiency by Serving 11 Vessels Simultaneously

The accomplishment builds on the vital role of Yanbu Commercial Port in strengthening Saudi Arabia's maritime transport system. (SPA)
The accomplishment builds on the vital role of Yanbu Commercial Port in strengthening Saudi Arabia's maritime transport system. (SPA)

Saudi Arabia’s Yanbu Commercial Port achieved a new operational milestone by successfully serving 11 vessels simultaneously of various sizes and cargo capacities, reflecting the port's high level of operational readiness, reported the Saudi Press Agency on Monday.

The achievement underscores the efficiency of the port's operations and its ability to manage maritime and commercial traffic with a high degree of effectiveness.

It contributes to smoother import and export activities and supports the continuity of supply chains in accordance with the highest operational and logistical standards.

The accomplishment builds on the vital role of Yanbu Commercial Port in strengthening Saudi Arabia's maritime transport system and reinforcing its position as a key logistics hub on the Red Sea coast.

It also supports economic growth and enhances the competitiveness of the maritime and commercial sectors.

Business

IMF Ready to Help Africa Weather Middle East Shock, Says Zeidane

Workers sort avocados for export to Chinese markets, at the Sunripe fresh fruits exporters factory in Limuru district of Kiambu County near Nairobi, Kenya June 4, 2026. (Reuters)
Workers sort avocados for export to Chinese markets, at the Sunripe fresh fruits exporters factory in Limuru district of Kiambu County near Nairobi, Kenya June 4, 2026. (Reuters)
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IMF Ready to Help Africa Weather Middle East Shock, Says Zeidane

Workers sort avocados for export to Chinese markets, at the Sunripe fresh fruits exporters factory in Limuru district of Kiambu County near Nairobi, Kenya June 4, 2026. (Reuters)
Workers sort avocados for export to Chinese markets, at the Sunripe fresh fruits exporters factory in Limuru district of Kiambu County near Nairobi, Kenya June 4, 2026. (Reuters)

The International Monetary Fund's new Africa chief, Zeine Zeidane, said that conflict in the Middle East has created difficulties for sub-Saharan Africa but reaffirmed the fund's commitment to aiding nations under economic strain.

Zeidane, who assumed his role as Director of the IMF's African Department on May 1, oversees operations and engagement with 45 countries across the region.

"My immediate priority is really to help countries in ‌the region to weather ‌this shock," Zeidane said at ‌a ⁠media briefing.

The IMF ⁠has already reached staff-level agreements to provide augmented financing in response to the conflict's effects for Burkina Faso, The Gambia and São Tomé and Príncipe.

For Ethiopia, which has a large IMF program in place, Zeidane said the fund accelerated about $200 million ⁠in financing.

Zeidane warned that disruptions linked to ‌the Middle East conflict could ‌take months to resolve, noting that a ceasefire was already ‌in place but that Gulf nations had ‌indicated it typically takes six to seven months for production and exports to resume fully.

He added that the Middle East's role as a significant exporter of fertilizers would have ‌far-reaching implications for Africa's food security and production costs.

Despite immediate challenges, Zeidane expressed ⁠optimism over ⁠sub-Saharan Africa's long-term prospects, noting that prior to the current crisis, the region was among the fastest-growing globally and had made strides in fiscal consolidation.

"The future, the next growth engine for the world, will be Africa," he said. "We need to support Africa to unlock its potential."

Zeidane, who began his IMF career in 2012, previously served as Mauritania's prime minister, central bank governor and economic adviser to the president. He succeeded Abebe Aemro Selassie, who retired from the IMF in May.

Business

The High Cost of Hormuz: $37 Billion Shock Exposes Iraq’s Economic Vulnerability

A drone view shows oil trucks arriving from Iraq on their way to the Baniyas oil terminal, Syria, May 14, 2026. (Reuters)
A drone view shows oil trucks arriving from Iraq on their way to the Baniyas oil terminal, Syria, May 14, 2026. (Reuters)
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The High Cost of Hormuz: $37 Billion Shock Exposes Iraq’s Economic Vulnerability

A drone view shows oil trucks arriving from Iraq on their way to the Baniyas oil terminal, Syria, May 14, 2026. (Reuters)
A drone view shows oil trucks arriving from Iraq on their way to the Baniyas oil terminal, Syria, May 14, 2026. (Reuters)

The recent regional war and the closure of the Strait of Hormuz have pushed Iraq’s economy into one of its most serious crises in decades. The massive financial losses are more than just another consequence of regional conflict; they have exposed Iraq’s near-total dependence on a single maritime export route.

As Baghdad struggles to finance public-sector salaries through domestic borrowing and the use of foreign-exchange reserves, the crisis has renewed scrutiny of years of poor planning, corruption, and political obstruction of strategic projects, such as the Basra-Aqaba oil pipeline, initiatives that could have provided alternative export routes and a safety net for the country’s most important source of income.

Financial and energy analysts estimate Iraq’s losses at more than $37 billion, a severe blow to an economy that relies overwhelmingly on oil revenues.

The disruption has forced authorities to draw on domestic debt and accumulated reserves to cover monthly salary and pension obligations estimated at roughly $6.5 billion.

Slow recovery

Although the conflict appears to be winding down and the Oil Ministry has expressed optimism about resuming production, energy experts caution that Iraqi oil fields may require months to return to their prewar output levels.

Before the crisis, Iraq produced more than 4.2 million barrels per day, including approximately 3.5 million barrels exported to international markets.

Observers said the consequences extend beyond the immediate financial shock caused by the freezing of oil revenues. The conflict revealed a “dangerous strategic vulnerability”: Iraq’s overwhelming reliance on southern Gulf export terminals and the Strait of Hormuz as the sole outlet for its most valuable resource.

The crisis has also revived debate over decades of mismanagement and inadequate planning in one of the country’s most vital economic sectors.

Oil trucks arrive from Iraq, on their way to the Baniyas oil terminal, in Qamishli, Syria, May 11, 2026. (Reuters)

A single export gateway

Over previous decades, Iraq possessed several overland export routes, including the Kirkuk–Ceyhan pipeline to Türkiye, the Iraq-Saudi pipeline, and the historic Kirkuk-Haifa and Kirkuk-Baniyas lines. Most have been out of service for years because of wars, political instability, and security challenges.

Successive governments sought to revive export diversification. Among the most significant proposals was the Basra-Aqaba pipeline, championed during the administration of former Prime Minister Mustafa Al-Kadhimi. The project would transport crude oil from southern Iraq to Jordan’s Red Sea port of Aqaba.

Energy specialists regard it as a strategic asset that could have reduced Iraq’s dependence on Gulf shipping routes. Political disputes and regional pressures, however, prevented its implementation.

Limited alternatives

As the crisis intensified and oil revenues dwindled, Iraq attempted to expand exports through Türkiye, Syria, and Jordan. Energy experts said those efforts achieved only marginal results.

Contrary to reports that Iraq was exporting oil through 700 tanker trucks through Syria, former Oil Ministry spokesman Asim Jihad said exports through Syrian territory amount to no more than 200 tankers per day.

He told Asharq Al-Awsat that Iraq is exporting fuel oil rather than crude oil through Syria to avoid bottlenecks at producing fields.

Such shipments, he added, are operationally complex and generate only limited revenue compared with normal export volumes.

On the northern route, Jihad noted that Iraq exports between 150,000 and 200,000 barrels per day through the Kurdistan Region’s pipeline to the port of Ceyhan in Türkiye.

Meanwhile, the older federal pipeline linking Kirkuk to Ceyhan remains out of service because of extensive damage that has yet to be repaired.

A drone view shows the Rumaila oil field in Basra, Iraq, June 8, 2026. (Reuters)

Jihad expressed little optimism that Iraq can establish major alternative export corridors outside the Gulf in the near future, citing time constraints, high costs, and political complications.

He also voiced uncertainty about negotiations with Ankara over future export agreements through Ceyhan, particularly as existing arrangements are set to expire at the end of July.

“The only option left for Iraq is to hope that no new conflict erupts in the Gulf that would once again close the Strait of Hormuz and deprive the country of its primary source of income,” he added.

Cost of the blockade

The Eco Iraq Observatory estimated that Iraq has lost roughly 350 million barrels of oil exports since the Strait of Hormuz was closed on February 28, representing missed sales worth approximately $37.7 billion at average market prices during the period.

According to the organization, Iraq had been exporting between 103 million and 107 million barrels of crude oil per month before the closure. Export losses reached 84.4 million barrels in March, 93.1 million in April, 92.8 million in May, and 79.6 million in June.

Eco Iraq argued that the “New Levant” initiative — a regional economic integration project involving Iraq, Jordan, and Egypt — has become a strategic necessity.

The plan envisions deeper economic cooperation, infrastructure links, and alternative export routes, including the shipment of Iraqi oil through Jordan to Egyptian ports, reducing dependence on geopolitically vulnerable maritime corridors.