SAL Ground-Handling Deal With Singapore Airlines Lifts Revenue Outlook

SAL Saudi Logistics Services Co.’s ground-handling division signed a new strategic agreement with Singapore Airlines on June 25. The deal covers comprehensive ground services at Saudi airports, including passenger and ramp handling, baggage processing, and cargo operations.

SAL said the agreement will have a positive impact on its financial results over the term of the contract. No specific revenue or duration figures were disclosed.

The contract adds a major international carrier to SAL's client roster. Singapore Airlines operates daily flights to Riyadh and Jeddah, with plans to expand capacity on the route. For SAL, the deal locks in recurring revenue from a high-frequency operator, which supports the company's push to grow its non-Hajj, non-seasonal business.

SAL's ground-handling unit competes with Saudi Ground Services Co. for airline contracts at the kingdom's main airports. Winning a carrier of Singapore Airlines' scale signals that SAL can match or undercut competitors on service terms. The financial impact will depend on flight frequency and the fee structure, which SAL did not detail.

The agreement follows a broader trend of Saudi airport operators signing long-term handling pacts with international airlines as the kingdom opens its aviation sector to more foreign carriers. SAL's stock has risen 12% this year, partly on expectations of such deals.