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.



Al Akaria Riyadh Land Cleared, Returning Strategic Asset to Development

Al Akaria participates in the Cityscape Global exhibition (Company handout)
Al Akaria participates in the Cityscape Global exhibition (Company handout)
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Al Akaria Riyadh Land Cleared, Returning Strategic Asset to Development

Al Akaria participates in the Cityscape Global exhibition (Company handout)
Al Akaria participates in the Cityscape Global exhibition (Company handout)

Lifting regulatory restrictions on real estate assets marks an important stage in the investment cycle, allowing owners to regain flexibility in managing and developing their properties.

Saudi Real Estate Co. (Al Akaria), which is majority-owned by Saudi Arabia’s Public Investment Fund, said restrictions had been lifted on a plot of land it owns in Riyadh’s northern Al-Arid district.

Experts said the move gives the company a wider range of investment options, although its economic value will ultimately depend on management’s ability to develop or invest the land in ways that generate future returns.

The company received the property registration deed issued by the Real Estate Registry, lifting restrictions on the 30,000-square-meter plot, which has a book value of 98.4 million riyals ($26 million).

The move transforms the property from an asset unavailable for development into one that can be used as part of the company’s investment strategy.

Sulaiman Al-Hamid Al-Khalidi, a financial and economic expert and member of the Saudi Economic Association, told Asharq Al-Awsat that the decision had renewed attention on one of the most important assets in Al Akaria’s portfolio and raised questions about whether it could strengthen the company’s market value in the coming period.

Greater asset management flexibility

Al-Khalidi said that although Al Akaria had confirmed there would be no immediate financial impact, the significance of the development went beyond its short-term accounting effect.

It gives the company greater flexibility in managing one of its strategic assets and allows it to benefit from the property through development, partnerships or the restructuring of its investment uses in ways that support future growth, he added.

From an investment perspective, investors do not generally view the removal of regulatory restrictions as an objective in itself, but rather as a step that can pave the way for the creation of new economic value.

The true assessment of the decision will therefore depend on management’s ability to turn the asset into a source of returns and cash flows, rather than merely regaining the right to dispose of it, Al-Khalidi said.

He said a legitimate question remained over whether the market had anticipated the development and already priced in a large part of its positive impact, particularly as investors had been following efforts to resolve the issue.

In such cases, continued momentum depends more on subsequent disclosures and implementation plans than on the announcement itself, he said.

The decision is also important for the broader property sector because it reflects stability and growth in the real estate market, he added.

Awaiting development plans

Al-Khalidi said markets reward companies not for announcements alone, but for their ability to turn developments into profits and cash flows.

The lifting of restrictions on Al Akaria’s land is therefore a positive step, but the final assessment will remain linked to the development and investment plans the company announces in the coming period, he said.

Decision supports real estate activity

Abdullah Al-Mousa, a property expert and observer, told Asharq Al-Awsat that lifting the restrictions was a positive development from a market perspective, as it returned a major real estate asset to economic use after a period of uncertainty.

When large plots become available for development or investment, they support activity in the property sector and create opportunities for new projects that can increase supply and stimulate investment, he said.

This is particularly significant when the land is strategically located in northern Riyadh, an area experiencing rapid urban growth, he added.

Al-Mousa said the real impact would not be measured merely by the removal of the restrictions, but by how quickly the asset was converted into a productive project that added value to the market.

Actual development is what affects investment volumes, employment opportunities and the diversity of real estate products, he said.

The decision is positive because it gives the company greater flexibility in managing one of its strategic assets, whether through direct development, partnerships, or other forms of investment consistent with its operational plan.

It could also increase the asset’s economic value and improve the options available to management for its future use, Al-Mousa said.

The actual financial impact, however, will depend on what the company later announces regarding its development plans, investment approach and implementation timetable.

Lifting the restrictions is a preliminary step, while economic value will be realized only when development or investment begins, he added.

Saudi Real Estate Co. announced that restrictions on the land it owns in the Al-Arid district of northern Riyadh were lifted following the issuance of a property registration deed by the Real Estate Registry.

The 30,000-square-meter plot is located within the commercial corridor between King Fahd Road and Olaya Road.

The property was among the plots mentioned in Emphasis of Matter paragraph 5/A of the company’s external auditor’s report on its condensed consolidated interim financial statements for the period ending March 31, 2026.

The paragraph stated that some company-owned plots were unavailable for use or development at the time, for various reasons related to conditions in the areas where the properties were located, or for other reasons under review by the relevant committees.

The company said it was studying the best possible uses for the land in line with its strategy and in a manner that would create added value for the company and its shareholders.

It said lifting the restrictions would have no immediate financial impact and that it would disclose any material developments in due course in accordance with applicable laws and regulations.

The company’s financial statements show that it owns land that is currently unavailable for disposal or development, with a total book value of more than 3 billion riyals.

Management is working with the relevant authorities to resolve the obstacles affecting those properties as part of a strategy to develop strategic assets and exit non-priority land holdings.

The strategy is intended to improve the efficiency of the company’s portfolio and reduce the costs associated with fees imposed on undeveloped land.


Oil Rises on Renewed US-Iran Hostilities and Threat of Red Sea Closure

Drills operate in an oil field in California (Reuters)
Drills operate in an oil field in California (Reuters)
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Oil Rises on Renewed US-Iran Hostilities and Threat of Red Sea Closure

Drills operate in an oil field in California (Reuters)
Drills operate in an oil field in California (Reuters)

Oil prices rose by more than 2% on Friday after the US and Iran stepped up attacks across the Gulf, with shipping threatened by a potential Red Sea closure on top of the restricted traffic through the Strait of Hormuz.

Brent crude futures rose by $1.77, or 2.1%, to $86 a barrel by 1158 GMT. US West Texas Intermediate futures were up $1.91, or 2.4%, at $80.86.

Both benchmarks have climbed about 13% this week, with Brent on track for a third consecutive weekly gain and WTI set for its second.

Diesel refining margins hit record highs on Friday, with low-sulphur gasoil futures touching $66.25 over Brent crude.

The Middle East is a major diesel exporter and the Hormuz closure, as well as attacks on oil refineries, have tightened fuel markets and bolstered prices globally. The broken truce between the US and Iran has resulted in a drop in oil flows out of the strait.

Iran said it launched fresh strikes on US facilities in the Middle East on Friday, including the first direct attack in Syria, after a sixth straight night of US strikes on Iranian military facilities. US Central Command said on Thursday that American forces had begun a new wave of strikes against Iran to further degrade Iranian military capabilities. "Oil security is still a critical issue," International Energy Agency Executive Director Fatih Birol said on Thursday at a Council on Foreign Relations event in Washington.

"We should be worried, and I am worried, if the situation does not improve in the next few weeks," he said.


Gold Heads for Biggest Weekly Loss in Six as Middle East War Fans Inflation Worries

16 March 2023, Bavaria, Munich: Gold bars and coins lie on the table at the Precious metal dealership Pro Aurum. (dpa)
16 March 2023, Bavaria, Munich: Gold bars and coins lie on the table at the Precious metal dealership Pro Aurum. (dpa)
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Gold Heads for Biggest Weekly Loss in Six as Middle East War Fans Inflation Worries

16 March 2023, Bavaria, Munich: Gold bars and coins lie on the table at the Precious metal dealership Pro Aurum. (dpa)
16 March 2023, Bavaria, Munich: Gold bars and coins lie on the table at the Precious metal dealership Pro Aurum. (dpa)

Gold was on track for its biggest weekly loss in six on Friday, as escalating US-Iran clashes lifted oil prices, adding to inflationary pressures and strengthening the case for higher US interest rates.

Spot gold was up 0.8% at $4,002.39 per ounce by 0624 GMT, having touched its lowest since July 1 earlier ‌in the day. US ‌gold futures for August delivery gained ‌0.4% ⁠to $4,006.10.

The metal has ⁠lost 3% so far this week, its largest decline since June 1, with the Middle East conflict outweighing support from softer June US inflation figures released this week.

"Gold is making tentative steps higher today after the sight of the metal slipping below $4,000 attracted some bargain hunting," said Tim Waterer, chief market analyst at ⁠KCM Trade.

However, "geopolitical risks in the Middle East ‌are still present, with inflation and yield ‌concerns being the dominant forces holding gold back," Waterer said.

Oil prices ‌have climbed about 12% this week as the escalating US-Iran conflict ‌raised supply concerns.

The surge in oil prices risks reigniting inflation worries and increasing the likelihood of interest rate hikes. Non-yielding gold typically struggles in a high-interest-rate environment, as investors gravitate towards assets offering higher returns.

Dallas Federal ‌Reserve President Lorie Logan became the first of Fed Chairman Kevin Warsh's new colleagues to ⁠call publicly for ⁠a rate hike.

Fed Vice Chair Philip Jefferson also suggested he would be open to raising rates if there is no near-term improvement in inflation.

Traders are pricing in a 73% chance of a rate hike in December, according to the CME FedWatch Tool.

Gold discounts in India widened to a one-month high this week as hopes of lower prices kept buyers on the sidelines, while premiums in China were largely steady.

Elsewhere, spot silver rose 0.6% to $55.83 per ounce, while platinum lost 1% to $1,602.02 and palladium eased 0.4% to $1,244.84. All three metals were headed for a weekly loss.