Riyadh Air bets on an ‘AI-native’ airline to rewire global aviation

Overview

Riyadh Air, Saudi Arabia's startup flag carrier, is what IBM and the airline call the world's first "AI-native" airline — built from day one around AI-driven, cloud-based systems, not retrofitted legacy IT. Launched in March 2023 under Vision 2030, the airline has ordered large fleets from Boeing and Airbus and aims to connect over 100 destinations and serve millions of travelers by 2030 through Riyadh's planned mega-hub.

From early 2024, Riyadh Air and IBM built an AI-centered operating stack on IBM's watsonx platform, spanning 59 workstreams and more than 60 technology partners. The stack supports employee workflows, crew enablement, customer service, and enterprise performance management.

Initial proving flights are underway, with full commercial service expected in early 2026. The Dec. 8, 2025 announcement at IBM Think Riyadh 2025 put the real question on record: whether agentic AI can safely and profitably orchestrate core airline operations in a heavily regulated, safety-critical industry.

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Key Indicators

3 years

Length of Riyadh Air–IBM collaboration to AI-native milestone

IBM describes the AI-native milestone unveiled in Dec. 2025 as a pivotal moment in a three‑year collaboration to build Riyadh Air as an AI-driven enterprise.

Technology workstreams

IBM Consulting orchestrated 59 workstreams and more than 60 partners—including Adobe, Apple, FLYR, Microsoft, and Sabre—to deliver Riyadh Air’s end‑to‑end digital and AI architecture.

100+

Target destinations by 2030

Riyadh Air plans to connect over 100 destinations by 2030, aligning with Saudi Arabia’s broader aviation strategy to reach 250+ destinations and 330 million passengers annually.

$100B

Planned Saudi aviation investment to 2030

Saudi authorities estimate around $100 billion in combined public and private investment to expand airports, airlines, and aviation services under the Saudi Aviation Strategy.

2026

Planned start of full commercial service

Riyadh Air and IBM say the AI-native architecture will underpin the airline’s full commercial launch, now targeted for early 2026 after initial proving flights to London and Dubai began in late 2025.

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People Involved

Tony Douglas

Leads AI-native build-out and global expansion strategy

Adam Boukadida

Public face for the ‘AI-native vs. legacy’ technology bet

Mohamad Ali

Leads IBM’s consulting role in building Riyadh Air as an AI-native enterprise

Arvind Krishna

Strategic sponsor of IBM’s partnership with Riyadh Air

Mohammed bin Salman bin Abdulaziz Al Saud

Political architect of Riyadh Air and the Saudi Aviation Strategy under Vision 2030

Abdulaziz Al-Duailej

Regulator overseeing safety, licensing, and the Saudi Aviation Strategy

Organizations Involved

Riyadh Air

Airline

Saudi startup national carrier building an AI-native operating model

Riyadh Air is a full-service, digitally led airline owned by Saudi Arabia’s Public Investment Fund (PIF). Announced in March 2023, it is designed to support Vision 2030 by turning Riyadh into a global aviation hub and connecting over 100 destinations by 2030.

International Business Machines Corporation (IBM)

Technology and Consulting Corporation

Lead technology partner and systems integrator for Riyadh Air’s AI-native architecture

IBM is a global technology and consulting company focusing on hybrid cloud, AI, and enterprise services. Through IBM Consulting and its watsonx AI platform, it is the principal architect of Riyadh Air’s AI-native operating model.

Public Investment Fund (PIF)

Sovereign wealth fund

Owner and strategic sponsor of Riyadh Air

PIF is Saudi Arabia’s sovereign wealth fund, tasked with deploying capital domestically and abroad to support Vision 2030. It fully owns Riyadh Air and is a major investor across the Kingdom’s aviation ecosystem.

General Authority of Civil Aviation (GACA), Saudi Arabia

Government Regulator

Sets safety, licensing, and strategy framework under which Riyadh Air operates

GACA is Saudi Arabia’s civil aviation regulator, responsible for safety oversight, economic licensing, and implementation of the Saudi Aviation Strategy that underpins Riyadh Air’s growth plans.

Sabre Corporation

Technology Provider

Provider of AI-native retailing and revenue optimization platform for Riyadh Air

Sabre is a global travel technology provider supplying distribution, retailing, and revenue optimization tools to airlines. With Riyadh Air, it is co-developing SabreMosaic, an AI-native, offer- and order-based retailing platform including Continuous Revenue Optimizer.

Timeline

IBM and Riyadh Air Unveil ‘World’s First AI-Native Airline’
Public Statement

At IBM Think Riyadh 2025, IBM and Riyadh Air announce that the airline is operating as the world’s first AI-native airline, with AI agents embedded in employee digital workplaces, crew enablement apps, customer-care bots, and enterprise performance management systems built on IBM’s watsonx platform and a 60+ partner ecosystem.
December 8th, 2025
Sabre Launches AI-Native Continuous Revenue Optimizer with Riyadh Air
Technology Launch

Sabre unveils its SabreMosaic Continuous Revenue Optimizer (CRO), an AI-native, classless revenue engine that provides continuous pricing recommendations. The solution is built in partnership with Riyadh Air, further embedding AI into the airline’s commercial operations.
October 14th, 2025
Riyadh Air Sets Inaugural Proving Flight to London
Operational Milestone

Riyadh Air announces it will commence its inaugural flight to London Heathrow on October 26, 2025, using a leased Boeing 787‑9 as a proving flight with limited access before opening to the general public.
October 8th, 2025
Riyadh Air Orders 25 Airbus A350-1000s
Commercial Deal

At the Paris Air Show, Riyadh Air confirms an order for 25 Airbus A350‑1000 aircraft, supplementing its Boeing 787 order and underscoring plans for a large, modern long-haul fleet.
June 16th, 2025
GACA Approves Riyadh Air to Commence Operations
Regulatory

Riyadh Air receives regulatory approval from Saudi Arabia’s GACA to commence flight operations, a prerequisite for proving flights and the later commercial launch.
April 6th, 2025
IBM and Riyadh Air Announce AI-Driven Enterprise Agreement
Technology Partnership

IBM and Riyadh Air unveil an agreement to build an AI-driven enterprise that uses IBM’s watsonx portfolio as the foundation for mission-critical functions and agentic AI-based automation in customer interactions and internal workflows, with IBM Consulting as lead systems integrator.
February 25th, 2025
Riyadh Air Selects SabreMosaic AI Platform
Technology Partnership

Riyadh Air signs a strategic agreement with Sabre to deploy its SabreMosaic Offer Optimization technology and AI-powered tools such as Air Price IQ, Ancillary IQ, Bundle IQ, and Upgrade IQ, aiming to become the first airline to operate entirely on offer- and order-based retailing from day one.
October 10th, 2024
IBM and Riyadh Air Highlight Collaboration at LEAP 2024
Partnership

At the LEAP 2024 technology conference in Riyadh, IBM and Riyadh Air announce next steps in their collaboration to build next-generation, channel-fluid guest and traveler interactions, positioning the airline as a digital-native carrier scheduled to commence operations in early 2025.
March 6th, 2024
Riyadh Air Secures Economic License from GACA
Regulatory

Saudi regulator GACA grants Riyadh Air its Passenger Air Transport Economic License, enabling the airline to move toward operational readiness.
June 14th, 2023
Riyadh Air Orders Up to 72 Boeing 787-9s
Commercial Deal

Riyadh Air announces an agreement to purchase 39 Boeing 787‑9 Dreamliners with options for 33 more, contributing to a combined Saudi order of up to 121 Dreamliners and signaling the scale of its long-haul ambitions.
March 14th, 2023
Saudi Crown Prince Announces Creation of Riyadh Air
Strategic Announcement

Crown Prince Mohammed bin Salman formally announces the establishment of Riyadh Air, a new national carrier fully owned by the Public Investment Fund, as part of Vision 2030’s push to make Saudi Arabia a global aviation and logistics hub.
March 12th, 2023

Scenarios

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Predictions leaderboard

AI-Native Blueprint Proves Out and Becomes the New Industry Standard

In this scenario, Riyadh Air’s AI-native architecture delivers measurable gains in reliability, customer satisfaction, and unit costs without major safety or reputational incidents. IBM and Sabre publish case studies showing double-digit productivity improvements and 2–4% revenue uplift from continuous pricing, dynamic offers, and integrated performance management. Regulators accept that agentic AI can manage many back-office and real-time operational decisions under appropriate governance. Established carriers begin adopting similar patterns—moving core operations, crew management, and retailing to AI-native platforms—using Riyadh Air as a benchmark. Saudi Arabia touts the airline as evidence that Vision 2030 is producing globally competitive, tech-forward national champions, attracting further investment and partnerships.

Discussed by: IBM, Sabre, aviation technology vendors, and strategy consultancies covering airline digital transformation

Consensus —

Partial Success: Hybrid Human–AI Model Emerges After Growing Pains

Here, Riyadh Air’s AI systems deliver benefits but also face friction—such as employee pushback, integration challenges with partners and legacy airport systems, and periods where AI recommendations conflict with operational judgment. Similar patterns have been seen at European carriers that introduced AI tools for operations and pricing but still rely heavily on human oversight. Regulators may require more explicit human-in-the-loop controls for certain use cases (e.g., disruption management, crew planning), slowing full automation. Riyadh Air retains its AI-native branding but settles into a pragmatic hybrid model where AI agents support rather than replace many decision-makers. The project remains a success, but the step-change vs. best-in-class legacy carriers narrows.

Discussed by: Aviation analysts, safety experts, and specialized trade media skeptical of full automation

Consensus —

Safety or Service Incident Triggers AI Backlash and Regulatory Clampdown

In a more adverse scenario, an AI-enabled system at Riyadh Air—or at another early adopter airline—contributes to a major disruption, safety incident, or serious customer-service failure. Even if human errors are also involved, media and regulators focus on the role of opaque AI decision-making. Given aviation’s low risk tolerance, authorities could respond with strict limitations on agentic AI in operations control, crew scheduling, or customer handling until new standards and certification regimes are in place. This would echo broader concerns seen in other industries where AI deployments led to job cuts or controversial decisions, prompting political and regulatory scrutiny. Riyadh Air might then have to roll back or heavily modify certain AI-driven workflows, increasing costs and diminishing the distinctiveness of its AI-native claim.

Discussed by: Risk-focused commentators, some labor groups, and cautious regulators observing AI deployments across airlines and airports

Consensus —

Geopolitical or Macroeconomic Shocks Slow Vision 2030 and Strand Investments

This scenario assumes that broader shocks—regional tensions, global recessions, oil price swings, or tourism setbacks—cause Saudi Arabia to scale back or delay aviation growth targets of 330 million passengers and 250+ destinations by 2030. Riyadh Air’s growth plan and AI-native investments depend on rapid traffic expansion and high aircraft utilization. If passenger volumes or tourism flows undershoot forecasts, the airline could face overcapacity and underutilized digital infrastructure. IBM and Sabre would still reuse the technology stack with other clients, but Riyadh Air might become a slower-growing, regionally focused carrier rather than the global disruptor envisioned.

Discussed by: Macro and political risk analysts following Gulf aviation strategies

Consensus —

Labor and Skills Tensions Reshape AI Deployment Pace

As airlines like Lufthansa use AI and digitalization to cut thousands of administrative jobs while modernizing operations, workforce tensions grow over displacement and job quality. Riyadh Air starts with a smaller legacy workforce, but as it expands and doubles its staff, employees may resist further automation if they see AI-native systems as a threat to career paths. Saudi labor markets and social expectations could influence how quickly the airline replaces or redefines roles with AI agents. If labor concerns intensify globally, regulators may tie approvals for certain AI deployments to worker consultation, training, or job guarantees, affecting how far Riyadh Air and its peers can push full automation.

Discussed by: Aviation unions, workforce researchers, and observers of AI-led restructuring at European carriers

Consensus —

Historical Context

KLM–BCG Digital Airline Operations Program

2018–2024

What Happened

Starting in 2018, KLM Royal Dutch Airlines partnered with Boston Consulting Group (BCG) to develop a suite of AI-based tools for integrated airline operations planning and control. These tools applied machine learning and optimization to fleet, crew, ground, and hub operations, reducing delays and improving efficiency. The partnership was extended in 2021 and again in 2024 as other airlines adopted the platform.

Outcome

Short Term

KLM and partner airlines reported better on-time performance, more resilient operations during disruptions, and higher utilization, demonstrating that AI-enhanced operations can work within legacy carriers.

Long Term

The KLM–BCG work helped normalize AI-assisted operations control, but most deployments remained layered on top of legacy architectures rather than replacing them, illustrating the difficulty of fully replatforming established airlines.

Why It's Relevant Today

KLM’s experience shows that AI can drive measurable performance gains even in complex, legacy environments, but also that deep transformation is slow and incremental. Riyadh Air’s claim to be AI-native from the outset is, in part, a bet that starting from a greenfield avoids the integration and change-management burdens that constrained KLM and its peers.

Air France–KLM Generative AI Factory with Accenture and Google Cloud

2024–2025

What Happened

In 2025, Air France–KLM, Accenture, and Google Cloud launched a "generative AI factory"—a cloud-based framework and set of tools to scale gen AI, agentic AI, and machine-learning models across the airline group. The initiative, built on a modernized digital core, supports use cases from maintenance diagnostics to customer service assistants and aims to accelerate AI development cycles by more than 35%.

Outcome

Short Term

The AI factory enabled Air France–KLM to roll out internal gen AI assistants and RPA-to-agentic AI upgrades, saving hundreds of thousands of hours of manual work and strengthening the business case for AI at scale.

Long Term

Over time, the project is expected to embed AI capabilities across many functions, but within an existing multi-brand airline group structure. It illustrates a parallel path to Riyadh Air: using a common AI platform to retrofit a large carrier rather than building one from scratch around AI.

Why It's Relevant Today

Air France–KLM’s gen AI factory shows how incumbent airline groups are moving toward AI platforms similar in spirit to Riyadh Air’s watsonx-based approach. The comparison highlights the strategic question: is it more effective to retrofit a fleet of legacy processes and systems, or, as Riyadh Air is attempting, to design the airline itself as an AI-native enterprise from day one?

Lufthansa Group and Eurowings: AI-Driven Efficiency and Job Cuts

2023–2030 (planned)

What Happened

Lufthansa Systems and Eurowings deployed an AI-powered operations control assistant (NetLine/Ops++ aiOCC) to help controllers anticipate disruptions and manage daily operations, while the broader Lufthansa Group announced plans in 2025 to cut about 4,000 administrative jobs by 2030 through AI and digitalization. AI is also used for dynamic pricing and airport turnaround monitoring, contributing to a wider European push to use AI for efficiency and profitability gains.

Outcome

Short Term

AI tools improved operations insight and commercial agility but triggered debates about workforce impacts as Lufthansa tied AI and automation directly to job reductions.

Long Term

By 2030, Lufthansa expects significantly higher profitability and a more integrated group structure, but with a leaner administrative workforce. The case has become emblematic of how AI in aviation can reshape labor relations and cost structures as much as technology stacks.

Why It's Relevant Today

Lufthansa and Eurowings illustrate a path where AI is layered onto legacy airlines primarily as an efficiency and cost-cutting tool. Riyadh Air’s AI-native narrative is more focused on reimagining experiences and architectures, but as its workforce grows, similar labor and cost pressures may arise. The European experience offers clues about how regulators, unions, and the public may react if AI-native airlines begin to use automation aggressively to reshape jobs.