Egypt launches airport privatization, US$4.1B expansion to boost tourism growth

EGYPT – President Abdel Fattah El-Sisi has reviewed ambitious plans to upgrade Egyptian airports and invite private sector management, advancing a comprehensive strategy to modernize the nation’s aviation infrastructure amid regional challenges.

Minister of Civil Aviation Sameh El-Hefny confirmed that 68 international companies and consortia have expressed interest in managing Hurghada International Airport as the pilot programme, conducted with the International Finance Corporation.

Among the infrastructure upgrades include the Terminal 4 project at Cairo International Airport as it aims to expand passenger and aircraft handling capacity, transforming the hub into a regional gateway through modern technology.

In addition, upgrade plans extend to Luxor International Airport, Borg El Arab in Alexandria, and El Alamein International Airport, alongside construction of a new passenger terminal at Capital International Airport and establishing international airports in Saint Catherine and Arish.

EgyptAir is also implementing an ambitious fleet modernization, adding 34 new aircraft comprising 16 Airbus A350-900s and 18 Boeing 737-8 Max, bringing total fleet to 97 by fiscal year 2030/2031.

The airline recently received its first A350-900 powered by sustainable aviation fuel, becoming the first North African carrier to operate the model. Air Cairo plans expansion to 82 aircraft from 40 over four years.

Further, Egypt has begun phasing out paper arrival and departure cards. The Ministry coordinates with Interior to activate electronic passport gates across all terminals, streamlining travel procedures and enhancing passenger experience.

El-Sisi affirmed that EgyptAir development remains a top priority, calling for a comprehensive vision to expand the fleet while adhering to environmental standards and increasing profitability. The national carrier achieved record profit rates, reducing accumulated losses by more than 50 percent, aiming to eliminate them within four years.

EgyptAir rose to 68th place in the 2025 Skytrax global rankings, up 20 positions from 2024, receiving awards for Best Economy Class Onboard Catering and Most Improved Airline in Africa for the second consecutive year.

For hospitality investors, these upgrades signal Egypt’s commitment to creating world-class transit infrastructure that seamlessly connects visitors to luxury destinations across Luxor, Alexandria and the Red Sea.

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