Riyadh – Mubasher: Saudi Ground Services Company (SGS) received a written notice on 6 September from  Flynas Company regarding the termination of their ground handling services contract.

The termination follows a contractual clause requiring a six-month prior notice period. The agreement, which was originally renewed on 14 April 2024 for a five-year term, was scheduled to run from 1 January 2024 until 31 December 2028.

Under the current terms, Saudi Ground Services provides ramp and passenger services for all domestic and international flynas flights across Saudi Arabian airports.

The company confirmed it will continue operations as usual during the notice period, with the termination becoming effective on 5 March 2027.

The company stated there will be no financial impact on its results for the fiscal year ending 31 December 2026. However, revenue impacts are expected to begin on 6 March 2027.

The contract generated SAR 151.47 million in revenue from the start of 2026 through the end of the second quarter.

Total revenue from the contract is projected to reach approximately SAR 306 million by the end of 2026.

Management plans to increase productivity and rationalize expenses to mitigate the financial impact of the termination.