Why Delta’s CEO Ed Bastian is Betting on New Saudi Route

Delta Air Lines is launching the first-ever direct flights between the US and the Saudi capital Riyadh, changing the way that Americans can travel.

The global first was discussed onstage at the Fortune Global Forum in Riyadh.

Ed Bastian, CEO at Delta, said it will have to overcome natural hurdles that Americans have.

Delta’s new route will connect Atlanta directly to King Khalid’s International Airport (RUH) in Riyadh.

Since business travel has grown steadily in the financial district of Riyadh, according to IMARC Group, this new development enables crucial connectivity for global corporations and their executives.

Discussing the route’s introduction, Ed said: “It’ll start slow, but I believe it’s going to gain popularity.”

The CEOs vision to make Saudi Arabia more accessible from the US aligns with the Crown Prince Mohammed bin Salman Al Saud’s Vision 2030 plan which aims to shift the country away from oil dependence and toward tourism, investment and technology.

Expanding the Middle East’s accessibility 

It was highlighted during the Global Forum that Saudi Arabia is working hard to attract major multinationals business growth.

The country has started a new airline company called Riyadh Air, which is intended to be a flagship national airline, similar to how Emirates represents the UAE.

The airline has partnered with Delta for multiple years and is led by CEO Tony Douglas, who was appointed in 2023.

Alongside Ed at the Forum, Tony spoke about the success of the carrier’s first ever flight to London Heathrow: “There’s nothing better than seeing our aircraft land at London Heathrow, 10 minutes ahead of schedule to mark that very, very special moment.”

Tony’s hiring in 2023 was part of the wider Vision 2030 goal of attracting 100 million visitors a year by 2030.

Riyadh Air has publicly stated that it expects to contribute over US$20bn to Saudi Arabia’s non-oil GDP and create more than 200,000 direct and indirect jobs.

In July 2024, Delta and Riyadh Air signed a memorandum of understanding on strategic cooperation between the airlines, with the goal of introducing a broad range of benefits for customer travelling between North America and Saudi Arabia - according to Delta’s investor press office.

At the time, Ed said: “We’re looking forward to building and expanding this partnership in the months and years ahead.”

Economic uncertainties affecting Delta’s growth

The US Government shutdown is causing issues for airlines flying in the country.

Speaking to Reuters at the Fortune Global Forum in Riyadh, Ed said: “The more obvious concern is TSA and ensuring that those checkpoints are staffed accordingly.”

About 13,000 air traffic controllers and 50,000 TSA officers are continuing to work without pay during the shutdown, and controllers are expected to miss their first full paycheque at the start of November.

Ed said that staffing challenges predate the shutdown: “Air traffic control is something in the US that is understaffed to begin with. So it's hard to sometimes identify what is attributable to the shutdown versus just understaffing in general.”

Ed also discussed Delta’s ongoing dispute with the US Department of Transportation over its nine-year-old joint venture with Aeromexico.

According to Reuters, Delta’s CEO said: “We believe that the dissolution of our joint venture, particularly because of [Antitrust Immunity] is not the right strategy and something that we have to ensure that we protect our interests here for the long term.” 

He added: “We've been in conversation [with the administration] for a long time,” and said there is no timeline for resolving the issue.