MEA to launch
a low-cost airline

In the works: Beirut Terminal 2

and a second airport in the North

Middle East Airlines (MEA) is exploring the launch of a low-cost carrier as part of a broader strategy to expand its reach across the Middle East and Europe, according to its Chairman Mohamad El Hout. The move comes as tickets on the carrier have soared ahead of the high summer season.

A second terminal at Beirut’s Rafic Hariri International Airport, and a second airport in the North, are both on the drawing board.

The planned budget airline would operate as a wholly owned subsidiary of the MEA group but maintain full operational independence. “We are thinking of preparing within the next two years to launch a low-cost airline under MEA, starting with four aircraft,” El Hout said in a press interview published today. He added that the carrier is currently in the process of sourcing aircraft, noting high demand and tight global supply.

“There’s strong demand for low-cost services on several routes where our current fleet configuration isn’t suitable,” El Hout said. The company has identified potential demand in destinations such as Germany, Denmark, and Egypt.

MEA is entering what El Hout described as “a new phase,” following a challenging period for the aviation sector. He cited the UAE’s recent decision to lift a travel ban on Emirati citizens flying to Lebanon as a sign of renewed confidence. Despite ongoing security concerns and recent Israeli attacks, MEA continues to experience a significant surge in passenger traffic. The airline projects year-on-year growth of ten to 15 percent in the second half of 2025.

Fleet Expansion to Support Network Growth
To support its expansion plans, MEA has nine aircraft on order. This includes six deliveries expected in 2026, two in 2027, and one in 2028. Among these are four Airbus A321XLR aircraft scheduled for arrival next year. The long-range narrow-body jets can operate flights up to nine hours, enabling MEA to tap into new markets, particularly in Africa. Additionally, MEA will receive two Airbus A330 Neo wide-body aircraft to replace older models. The airline is also pursuing four Airbus A320 Neo jets, although delivery timelines remain uncertain due to ongoing supply chain bottlenecks. “Airbus’ backlog now stretches up to five years, but some leasing companies do have availability,” El Hout said.

Securing these aircraft is a prerequisite for moving ahead with the low-cost airline project. El Hout said that aircraft delivery delays remain a persistent issue, with some jets originally slated for 2023 now expected in 2025.

Beirut Airport Expansion Under PPP Model
MEA is also closely involved in plans to construct a second terminal at Beirut’s Rafic Hariri International Airport. Developed by engineering consultancy Dar Al Handasah (DAR), the new terminal will have an initial capacity of five million passengers and is expected to be implemented through a public-private partnership (PPP). “The government is preparing the terms of reference for the project,” El Hout said. “MEA is very interested, especially if the terminal is dedicated to MEA operations, its partners, and SkyTeam alliance members.” The terminal is designed to feature advanced passenger processing technologies, including systems that eliminate the need for traditional passport control. The layout includes eight ‘fingers’ for narrow-body aircraft and three for wide-body aircraft, totaling 11 gates.

The estimated cost of the project ranges between $400 million and $500 million. El Hout noted strong interest from both Lebanese and international investors. “We’ve already held discussions and can see significant enthusiasm,” he said. Phase one is expected to meet demand for the next 10 to 15 years, with a potential second phase to boost capacity to eight million passengers if conditions improve.

Second International Airport in the Pipeline
In a separate development, Lebanon is also moving forward with plans to establish a second international airport. Prime Minister Nawaf Salam announced in May that the government would unveil the master plan for Rene Mouawad Airport in Kleyat within weeks. “We are advancing plans to rebrand and launch a second international airport,” Salam said. “The new airport could play a strategic role in facilitating cargo movement and affordable travel.” The project is expected to be open to foreign investment and form a key pillar of Lebanon’s transportation infrastructure.