Riyadh Air and IBM Partner to Launch World's First AI-Native Airline
Rhea-AI Summary
Riyadh Air and IBM (NYSE: IBM) announced a partnership to launch the world's first AI-native airline, embedding AI across operations, employee tools and customer care.
The collaboration spans three years, coordinated across 59 workstreams with more than 60 partners, and uses IBM watsonx Orchestrate and IBM Consulting Advantage. Initial flights are underway with first commercial service expected in early 2026. Riyadh Air plans to double its workforce in the next 12 months and aims to expand connectivity to more than 100 destinations by 2030.
Positive
- First commercial service expected in early 2026
- Three-year collaboration with 59 workstreams and 60+ partners
- Plans to double workforce within 12 months
Negative
- None.
News Market Reaction
On the day this news was published, IBM gained 0.40%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Sector peers showed mixed moves: ACN -0.56%, FI -0.17%, INFY -0.44% versus CTSH +0.94% and FIS +1.62%, pointing to stock-specific rather than broad IT services momentum.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 20 | Quantum collaboration | Positive | +0.7% | Planned IBM–Cisco network of large-scale fault-tolerant quantum computers. |
| Nov 19 | Semiconductor research | Positive | -0.5% | Joint University of Dayton collaboration on next-gen semiconductor technologies. |
| Nov 14 | AI sports analytics | Positive | +0.3% | Launch of UFC In-Fight Insights AI platform using watsonx data capabilities. |
| Nov 13 | AI readiness study | Negative | -3.2% | Global CDO survey highlighting gaps between AI ambitions and data readiness. |
| Nov 12 | Quantum roadmap | Positive | +0.4% | New quantum processors and software moving timeline toward quantum advantage. |
Recent technology and AI announcements have typically produced modest, directionally consistent price reactions, with only occasional divergences.
Over the last month, IBM has issued several innovation-focused updates. On Nov 12, 2025, quantum hardware and software advances coincided with a 0.4% gain. The Nov 14 UFC AI analytics launch saw a 0.27% rise, while the Nov 5 Agassi AI sports platform correlated with a 1.97% move. By contrast, the Nov 13 CDO AI readiness study aligned with a -3.21% decline. The Riyadh Air AI-native airline collaboration extends this pattern of AI-led ecosystem partnerships.
Market Pulse Summary
This announcement extends IBM’s strategy of embedding watsonx and consulting capabilities into large clients’ core operations. By orchestrating 59 workstreams and more than 60 partners for Riyadh Air, IBM is positioning AI at the foundation of an airline’s workflows, from crew tools to enterprise performance management. In context of solid Q3 2025 results with revenue of $16.331 billion, investors may watch for concrete adoption milestones, workload scale, and financial disclosures that tie these AI-native deployments to consulting and software growth.
Key Terms
generative AI technical
agentic AI technical
AI agents technical
enterprise performance management financial
AI-generated analysis. Not financial advice.
Riyadh Air's AI‑powered operations create agility across the business and unify employee and guest experiences, setting a new benchmark in aviation
Riyadh Air is leveraging IBM Consulting's deep industry and technical expertise, broad partner ecosystem, and IBM watsonx Orchestrate to operate as an AI-native enterprise from day one. IBM Consulting served as the orchestrator behind this ambitious AI vision, bringing together 59 workstreams and more than 60 partners, including Adobe, Apple, FLYR, and Microsoft. Using IBM Consulting Advantage, its AI-powered delivery platform designed to accelerate value creation, IBM consultants were able to help provide seamless execution of the airline's end-to-end technology strategy.
With initial flights underway and its first commercial service expected in early 2026, the three‑year collaboration between Riyadh Air and IBM has reached a pivotal moment.
"We had a clear choice—be the last airline built on legacy technology or the first built on the platforms that will define the next decade of aviation," said Adam Boukadida, Chief Financial Officer, Riyadh Air. "With IBM, we've stripped out fifty years of legacy in a single stroke. Riyadh Air isn't just built for today; it's built for the future and creating a pathway for many airlines to follow in the years to come."
"By embedding AI into the very foundation of its operations, Riyadh Air is setting a new blueprint for what it means to build a modern, adaptive enterprise from the ground up," said Mohamad Ali, Senior Vice President, IBM Consulting. "As a company born in the AI era, Riyadh Air is redefining what's possible in aviation and it's been a privilege for IBM to help make that vision a reality."
Bringing Together Employee and Guest Experiences
Riyadh Air is reimagining how employees work and engage with travelers in the AI era. By infusing generative AI and agentic AI capabilities into workflows, the airline is creating a synchronized environment where people and technology deliver effortless travel.
- Employee Experience: Riyadh Air will introduce a personalized digital workplace powered by AI agents. The platform will give employees a single, chat-first entry point to HR, simplifying workflows and accelerating key employee and manager self-service capabilities as Riyadh Air doubles its workforce in the next 12 months.
- Crew Enablement: AI-powered mobile applications will create a connected and integrated employee and guest journey. Riyadh Air will use IBM watsonx Orchestrate to build an agentic AI-based concierge experience for employees that is trustworthy, proactive, contextually aware, and proposes next best actions for each persona interacting with guests. This will enable cabin and ground crews to deliver tailored service, for example, prompting staff to offer fast-track services to customers running late.
- Customer Care: Digitally driven yet anchored in human values, AI‑enabled voice bots and agent assist will help customer care agents deliver attentive, personalized support using contextual data to anticipate traveler needs and enhance the overall travel experience.
Operational Efficiency as the Engine for Innovation
Built for efficiency from the start, Riyadh Air isn't constrained by legacy systems or incremental productivity gains. Beginning with a completely blank digital slate, the airline is using AI to create new revenue opportunities and reinvest in innovation across its operations.
IBM Consulting implemented an enterprise performance management suite to bring together financial, operational and commercial data across the organization, automating planning, budgeting, forecasting and analysis to deliver real time insights and support data driven decision making. By building this integrated foundation, Riyadh Air is enhancing its efficiency, optimizing route profitability and strengthening overall business performance.
Together, IBM and Riyadh Air have built an AI‑native enterprise with the digital strategy, architecture and operating models needed for the airline to achieve its ambition of transforming aviation and expanding the
About Riyadh Air
Riyadh Air is a world-class airline owned by the Public Investment Fund (PIF). Launched in March 2023, the airline will be a digitally-led, full service airline that adopts the best global sustainability and safety practices across its advanced fleet of aircraft. Riyadh Air will equip its aircrafts with the most advanced, state-of-the-art features with innovative, best-in-class cabin interiors and experiences, including next generation digital in-flight entertainment systems and connectivity solutions. Riyadh Air will connect guests to over 100 destinations around the world by 2030 through offering an exceptional guest experience with an authentic, warm Saudi hospitality at its heart.
For more information, please visit our website: www.riyadhair.com - and for any media inquiries please contact us at: media@riyadhair.com
About IBM
IBM is a leading provider of global hybrid cloud and AI, and consulting expertise. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Thousands of government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM's hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM's breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and consulting deliver open and flexible options to our clients. All of this is backed by IBM's long-standing commitment to trust, transparency, responsibility, inclusivity and service. Visit www.ibm.com for more information.
Media contact:
Lily O'Brien
IBM
lilyobrien@ibm.com
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SOURCE IBM
FAQ
When is Riyadh Air's first commercial service expected and what is the stock symbol involved?
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