Riyadh – Mubasher: Saudi Ground Services Company (SGS) has received a major contract award from Saudi Airlines for Air Transport Company (Saudia), a related party, to provide comprehensive ground handling and passenger services across all airports in the Kingdom.
The five-year agreement is valued at an estimated basis of SAR 6.30 billion and is set to commence on 1 April 2026.
This contract is set to expire on 31 March 2031, expected to significantly bolster Saudi Ground Services’ operational performance and ensure the long-term sustainability of its business activities within the Saudi aviation sector.
The listed company confirmed that it received the official award letter on 21 May 2026, in a deal that outlines a robust partnership with Saudia that acts as a related party in this award while covering a broad spectrum of aviation support services.
Under the terms of the agreement, Saudi Ground Services will manage ground handling, ramp services, and passenger services for both domestic and international flights.
The financial impact of this significant award is forecast to materialize in the listed company’s financial results starting from the second quarter (Q2) of 2026.
Saudi Ground Services stated that it anticipates this contract will not only enhance its operational throughput but also provide a stable and predictable revenue stream that supports its strategic objectives.
The awarded contract involves several members of the Saudi Ground Services’ board of directors who serve in non-executive capacities. Specifically, the disclosure identified Nasser Al Qawas, Fahd Moussa, and Amer Al Khushail as the related parties involved in this context.
As the company prepares for the commencement of the contract in 2026, the focus will remain on optimizing its operational capabilities to meet the demands of this large-scale agreement. The projected sustainability and enhanced performance resulting from this contract are expected to be key drivers for the company’s growth trajectory over the next several years.
Saudi Ground Services has confirmed that there are no additional details to disclose at this time regarding the award.
In Q1-26, which ended on 31 March, the listed company generated net profits worth SAR 60.45 million and revenue of SAR 672.49 million.
