Wizz Air eyes potential expansion into Saudi Arabia

Low-cost carrier Wizz Air has inked a memorandum of understanding with the Ministry of Investment of the Kingdom of Saudi Arabia that will see the pair explore airline market development opportunities in the Kingdom.

Wizz Air said on Tuesday that the memorandum of understanding, which was supported by the Saudi National Air Connectivity Programme, comes after the Kingdom launched a "strategic and ambitious vision" to triple passenger traffic by 2030, offering "unprecedented opportunities" for airlines and the aviation supply chain.

The FTSE 250-listed firm stated its "innovative and sustainable ultra-low-cost-carrier model" was proven to develop markets by making air travel affordable and added that the MoU reflected "a shared vision" between the parties on the potential Wizz Air could bring to the Kingdom to stimulate new demand, making "a significant contribution" to Saudi Arabia's planned growth in the process.

"The parties will work together to enable potential investment and operating models to benefit and add to the Saudi Arabian aviation ecosystem, boosting its tourism industry and significantly increasing its connectivity," said Wizz.

As of 0820 BST, Wizz Air shares were up 2.79% at 2,983.0p.

Reporting by Iain Gilbert at Sharecast.com