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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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World Bank Forecasts 4.3% Growth for Saudi Economy, Supported by Non-Oil Activities

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat
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World Bank Forecasts 4.3% Growth for Saudi Economy, Supported by Non-Oil Activities

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat

The World Bank affirmed on Thursday that Saudi Arabia's economy has gained significant momentum for 2026-2027, driven by robust non-oil sector expansion under Vision 2030.

In a report titled “The Gulf’s Digital Transformation: A Powerful Engine for Economic Diversification,” the World Bank said growth is expected to persist in the Kingdom with non-oil activities expanding by 4% on average.

The report lifted its forecast for Saudi Arabia’s real GDP growth to 3.8% in 2025 compared to a 3.2% last October.

The forecast represents a major upward revision affirming the resilience of the Saudi economy and its ability to absorb external volatility. It also indicates growing confidence in the effectiveness of ongoing structural reforms within Vision 2030.

On Tuesday, Saudi Arabia approved its state budget for 2026, projecting real GDP growth of 4.6% in 2026.

The report showed that in the Kingdom, economic momentum is strengthening across oil and non-oil sectors with non-oil activities expanding by 4% on average and oil activities expanding by 5.4%, bringing overall real growth to an average of 4.3%.

It said oil activities grew by 1.7% y/y in the first half of 2025, benefiting from the phase-out of OPEC+ voluntary production cuts starting in April 2025.

At the financial level, the fiscal deficit between 2025 and 2027 is projected to remain at an average of 3.8% of GDP.

Meanwhile, the current account balance slightly recovered, settling at 0.5% of GDP in the first quarter of 2025 against -2.6% in the second half of 2024.

The report said real GDP growth remained stable at 3.6% y/y in the first half of 2025, thanks to the stabilization of the oil sector and sustained non-oil growth.

Non-oil activities expanded by 4.8% over the period, in line with the performance of 2024 while non-oil growth was driven by the wholesale, retail trade, restaurants, and hotels sector (+7.5% y/y in the first half of 2025), consolidating the role of hospitality and tourism as engines of economic diversification.

The report also indicated that oil activities grew by 1.7% y/y in the first half of 2025, benefiting from the phase-out of OPEC+ voluntary production cuts starting in April 2025.

These trends are expected to persist in 2026-2027, with non-oil activities expanding by 4% on average and oil activities expanding by 5.4%, bringing overall real growth to an average of 4.3%.

Job Market and Inflation
The report said the labor market mirrors the stabilization of the real economy and is rapidly becoming more inclusive to women.

Overall unemployment decreased by 0.7 point between the first quarter of 2024 and the first quarter of 2025, with the female unemployment rate dropping from 11.8% to 8.1% over the same period.

Also, inflation remained low and stable in Saudi Arabia, settling at an average of 2.2% in the first half of 2025.

However, price increases have been concentrated in the housing and utilities sector as rental prices have become a key issue, largely because rental supply has failed to match demographic growth, especially in Riyadh.

While this reflects the government’s efforts to dynamize the Kingdom’s urban centers, the price increases prompted the government to freeze rental prices in Riyadh for the next five years, as anticipated increases in housing supply should help control rental prices.

Finally, the report said Saudi Arabia’s external position stabilized in the second half of 2024 and the first quarter of 2025.

Although net foreign direct investment has remained relatively stable, the World Bank has emphasized that recent changes in foreign ownership regulations in Saudi Arabia, coupled with continued structural reforms, are positive steps to attract greater flows of foreign direct investment (FDI).

Business

Visa Relocates European Headquarters to London's Canary Wharf

FILE PHOTO: A drone view of London's Canary Wharf financial district, two days before the government presents its critical pre-election budget, in London, Britain March 3, 2024. REUTERS/Yann Tessier/File Photo
FILE PHOTO: A drone view of London's Canary Wharf financial district, two days before the government presents its critical pre-election budget, in London, Britain March 3, 2024. REUTERS/Yann Tessier/File Photo
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Visa Relocates European Headquarters to London's Canary Wharf

FILE PHOTO: A drone view of London's Canary Wharf financial district, two days before the government presents its critical pre-election budget, in London, Britain March 3, 2024. REUTERS/Yann Tessier/File Photo
FILE PHOTO: A drone view of London's Canary Wharf financial district, two days before the government presents its critical pre-election budget, in London, Britain March 3, 2024. REUTERS/Yann Tessier/File Photo

Visa is relocating its European headquarters to London's Canary Wharf financial district, the Canary Wharf Group said on Friday.

The firm is leasing 300,000 square feet on a 15-year term at One Canada Square, and is set to relocate from Paddington in the summer of 2028, the group added.

Canary Wharf Group, which runs the wider financial district and is co-owned by QIA and Canada's Brookfield, was hit hard by the pandemic-induced fall in office demand.

The area is now enjoying a rebound as more firms push staff to return to office, Reuters reported.

"Canary Wharf continues to attract a diverse range of global businesses. We are delighted to welcome Visa who have chosen the Wharf for their European headquarters as the best location to support their business growth," Shobi Khan, Canary Wharf Group CEO, said.

JPMorgan Chase last week unveiled a plan to build a tower in the Canary Wharf financial district that will contribute 9.9 billion pounds ($13.2 billion) over six years to the local economy - including the cost of construction - and create 7,800 jobs.

Qatar's sovereign wealth fund is revising plans for a revamp of its HSBC skyscraper in the east London district to retain more office space, Reuters reported in November.

Business

World Bank Raises GCC Growth Forecast

GCC leaders and their representatives attend the 46th Gulf Summit held in the Bahraini capital (BNA) 
GCC leaders and their representatives attend the 46th Gulf Summit held in the Bahraini capital (BNA) 
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World Bank Raises GCC Growth Forecast

GCC leaders and their representatives attend the 46th Gulf Summit held in the Bahraini capital (BNA) 
GCC leaders and their representatives attend the 46th Gulf Summit held in the Bahraini capital (BNA) 

The World Bank has lifted its growth forecast for the Gulf Council Cooperation (GCC) to 4.5% for 2026, supported by structural reforms and rapid digital innovation.

A WB forecast issued in October had projected 4.4% growth for 2026.

In its latest edition of the Gulf Economic Update (GEU), the World Bank said economic growth across the Gulf council is gaining momentum in 2025.

It said GCC countries are going through rapid structural transformation to diversify their economies away from oil, where jobs are at the heart of national vision.

The GCC countries are also in a unique position to attract and retain talent equipped with digital skills to build, operate and sustain the large digital infrastructure investments made in Digital Public Infrastructure, cloud computing, data centers and AI.

In Bahrain, the report said the country continues to show robust growth, driven primarily by its non-oil sectors, notably financial services and tourism.

Investments in infrastructure, gas, logistics, financial technology, and tourism are expected to sustain medium-term growth.

However, the report showed that fiscal pressures persist due to high deficits and elevated public debt while the economy is expected to expand by 3.5% in 2025.

Kuwait is emerging from two challenging years marked by regional instability, subdued oil prices, and OPEC+ production cuts, according to the WB report.

After consecutive GDP contractions in 2023 and 2024, the economy is showing signs of recovery, with positive growth expected in 2025 and beyond, supported by higher oil exports.

The recent passage of a financing and liquidity law enabling government debt issuance is a positive step toward easing fiscal pressures, the report said, adding that the economy is expected to expand by 2.7% in 2025.

Oman, the WB report said, has accelerated its diversification efforts, with non-hydrocarbon sectors increasingly driving growth.

The economy is expected to expand by 3.1% in 2025, with further acceleration anticipated in the medium term.

As for Qatar, it maintains a steady growth trajectory, underpinned by strong non-oil sector performance and robust external surpluses despite lower hydrocarbon prices.

As a global leader in liquified natural gas (LNG) production, Qatar is set to significantly boost output through the North Field expansion, reinforcing its position in global LNG markets.

Fiscal and current account surpluses are expected to remain strong, supported by LNG expansion as real GDP growth is projected to reach 2.8% in 2025.

Saudi Arabia is experiencing renewed economic momentum, with both oil and non-oil sectors contributing to growth. Real GDP growth is expected to reach 3.8% in 2025.

The report noted that fiscal pressures have intensified due to subdued oil prices, resulting in a widening deficit.

The country is leveraging its low debt levels to access global capital markets, with recent borrowing raising the debt-to-GDP ratio to close to 32%.

Ongoing reforms under Vision 2030 and changes in foreign ownership regulations are expected to further attract investment.

Also, the WB said, the UAE continues to sustain economic dynamism and diversification, with real GDP growth projected to reach 4.8% in 2025.

The Emirates stands out for its diversified economy, with balanced growth between non-oil and oil sectors, it said, adding that it is also leading in diversifying its export base.

Gulf and AI

The report showed that all GCC countries have robust telecom networks, with 5G coverage exceeding 90% and widespread fiber connections.

It said significant investments in data centers and high-performance computing (HPC) systems, especially in Saudi Arabia and UAE, underpin the region’s digital economy and AI readiness.

“Diversification and digital transformation are no longer optional. They are essential for long-term stability and prosperity. Strategic investments in non-oil sectors and innovation will be critical to sustaining growth and stability,” said Safaa El Tayeb El Kogali, World Bank Division Director for the Gulf Cooperation Council.

“The GCC’s digital leap is remarkable. With robust infrastructure and growing computer power, skills and competencies in Artificial intelligence (AI) capabilities, the region is well-placed to lead in innovation, provided we address labor and environmental challenges proactively,” she added.

The report also showed that women’s participation in the fields of Science, Technology, Engineering, and Mathematics (STEM) surpasses the global average, further reinforcing the region’s digital competitiveness.