عربي English Türkçe اردو فارسى
Logo
Latest News
Business

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)
TT
TT

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.

Most Viewed

 
 
Business

IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
TT
TT

IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA

The International Monetary Fund (IMF) and the Arab Monetary Fund (AMF) signed a memorandum of understanding (MoU) on the sidelines of the AlUla Conference on Emerging Market Economies (EME) to enhance cooperation between the two institutions.

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki, SPA reported.

The agreement aims to strengthen coordination in economic and financial policy areas, including surveillance and lending activities, data and analytical exchange, capacity building, and the provision of technical assistance, in support of regional financial and economic stability.

Both sides affirmed that the MoU represents an important step toward deepening their strategic partnership and strengthening the regional financial safety net, serving member countries and enhancing their ability to address economic challenges.

Business

Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT
TT
TT

Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT

The Federation of Saudi Chambers announced the formation of the first joint Saudi-Kuwaiti Business Council for its inaugural term (1447–1451 AH) and the election of Salman bin Hassan Al-Oqayel as its chairman.

Al-Oqayel said the council’s formation marks a pivotal milestone in economic relations between Saudi Arabia and Kuwait, reflecting a practical approach to enabling the business sectors in both countries to capitalize on promising investment opportunities and strengthen bilateral trade and investment partnerships, SPA reported.

He noted that trade between Saudi Arabia and Kuwait reached approximately SAR9.5 billion by the end of November 2025, including SAR8 billion in Saudi exports and SAR1.5 billion in Kuwaiti imports.

Business

Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
TT
TT

Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).

Harvard University economics professor Pol Antràs said Saudi Arabia represents an exceptional model in the shifting global trade landscape, differing fundamentally from traditional emerging-market frameworks. He also stressed that globalization has not ended but has instead re-formed into what he describes as fragmented integration.

Speaking to Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Antràs said Saudi Arabia’s Vision-driven structural reforms position the Kingdom to benefit from the ongoing phase of fragmented integration, adding that the country’s strategic focus on logistics transformation and artificial intelligence constitutes a key engine for sustainable growth that extends beyond the volatility of global crises.

Antràs, the Robert G. Ory Professor of Economics at Harvard University, is one of the leading contemporary theorists of international trade. His research, which reshaped understanding of global value chains, focuses on how firms organize cross-border production and how regulation and technological change influence global trade flows and corporate decision-making.

He said conventional classifications of economies often obscure important structural differences, noting that the term emerging markets groups together countries with widely divergent industrial bases. Economies that depend heavily on manufacturing exports rely critically on market access and trade integration and therefore face stronger competitive pressures from Chinese exports that are increasingly shifting toward alternative markets.

Saudi Arabia, by contrast, exports extensively while facing limited direct competition from China in its primary export commodity, a situation that creates a strategic opportunity. The current environment allows the Kingdom to obtain imports from China at lower cost and access a broader range of goods that previously flowed largely toward the United States market.

Addressing how emerging economies should respond to dumping pressures and rising competition, Antràs said countries should minimize protectionist tendencies and instead position themselves as committed participants in the multilateral trading system, allowing foreign producers to access domestic markets while encouraging domestic firms to expand internationally.

He noted that although Chinese dumping presents concerns for countries with manufacturing sectors that compete directly with Chinese production, the risk is lower for Saudi Arabia because it does not maintain a large manufacturing base that overlaps directly with Chinese exports. Lower-cost imports could benefit Saudi consumers, while targeted policy tools such as credit programs, subsidies, and support for firms seeking to redesign and upgrade business models represent more effective responses than broad protectionist measures.

Globalization has not ended

Antràs said globalization continues but through more complex structures, with trade agreements increasingly negotiated through diverse arrangements rather than relying primarily on multilateral negotiations. Trade deals will continue to be concluded, but they are likely to become more complex, with uncertainty remaining a defining feature of the global trading environment.

Interest rates and artificial intelligence

According to Antràs, high global interest rates, combined with the additional risk premiums faced by emerging markets, are constraining investment, particularly in sectors that require export financing, capital expenditure, and continuous quality upgrading.

However, he noted that elevated interest rates partly reflect expectations of stronger long-term growth driven by artificial intelligence and broader technological transformation.

He also said if those growth expectations materialize, productivity gains could enable small and medium-sized enterprises to forecast demand more accurately and identify previously untapped markets, partially offsetting the negative effects of higher borrowing costs.

Employment concerns and the role of government

The Harvard professor warned that labor markets face a dual challenge stemming from intensified Chinese export competition and accelerating job automation driven by artificial intelligence, developments that could lead to significant disruptions, particularly among younger workers. He said governments must adopt proactive strategies requiring substantial fiscal resources to mitigate near-term labor-market shocks.

According to Antràs, productivity growth remains the central condition for success: if new technologies deliver the anticipated productivity gains, governments will gain the fiscal space needed to compensate affected groups and retrain the workforce, achieving a balance between addressing short-term disruptions and investing in long-term strategic gains.