Wizz Air needs to rethink its Saudi play

Wizz Air needs to return to the drawing board to get its Saudi play right.

One size doesn’t fit all, and the airline's Saudi strategy is a case in point. The entry was bold, but it lacked local calibration. Of the 25 international routes launched, few remain.

The plan to establish a Saudi AOC was shelved. Rapid route reversals followed. What was missing - demand? Or was it market fit? Do share your thoughts!

That said, there’s reason to believe a course correction is underway. Wizz Air's decision to launch new services from the UK to Jeddah and Medina is a smart pivot.

Consider this angle:
>35.7 million Umrah performers arrived in the Kingdom in 2024, including 16.8 million international pilgrims.

>The UK is home to 3.9 million Muslims (Roughly 6.5% of the population, based on the last census), with a median age of just 27.

>High concentration in London, Birmingham, Bradford, Manchester, and Leicester.

>A young, digitally native and price-sensitive demographic with both the intent and ability to travel.

There’s also a wider commercial argument for low-cost capacity. On routes like Riyadh–Rome, fares on Saudia (dated narrow body product) often range from SAR 2,500 to 3,000 round trip (~USD 650–800) pricing that leaves significant room for LCC or ULCC disruption, especially for non-premium, P2P pax. Wizz used to sell one-way tickets for as low as SAR 100. From a demand stimulation perspective, could it get any better?

Wizz is structurally well-positioned to address that gap, but it can't simply transplant a European model into a very different operating environment. For context, Wizz had the lowest CASK among European LCCs in FY24.

To succeed in the Kingdom, Wizz must at least:

1. Embrace a locally tuned strategy (incl. network, distribution, product, marketing and sales.)

2. Deepen its understanding of the cultural nuances.

The fundamentals remain strong, and the opportunity is still very real!

(This write-up is for educational/informational purposes only; happy to amend inaccuracies, if any. Views are personal.)

We will explore the strategic moves of carriers that have pursued new AOCs, entered new geographies, or built multi-hub models in the coming weeks.