Air Algérie Expands Network with New Routes, Addis Ababa Cooperation, and Constantine Lounge
Image: Algerie Eco
Takeaway
Air Algérie's aggressive expansion, backed by government subsidies and fleet modernization, signals a strategic push to capture market share in the competitive African aviation landscape. Investors should monitor Air Algérie's partnerships and route performance, as its success will impact regional tourism, trade, and infrastructure development. The airline's focus on Algiers as a transit hub could create opportunities for logistics companies and airport service providers.
Air Algérie is expanding its international and domestic presence with new routes and service enhancements. On Monday, February 16, 2026, the airline inaugurated a new first-class lounge at the Mohamed Boudiaf International Airport in Constantine, enhancing passenger experience. Simultaneously, in Addis Ababa, Ethiopia, Air Algérie signed two cooperation agreements with the African Business Council (AfBC) and the Africa Prosperity Network (APN) to solidify its continental positioning and involvement in African economic dynamics. Furthermore, Air Algérie unveiled new flight routes to Budapest, Hungary, and Addis Ababa, demonstrating its international expansion strategy.
Air Algérie's expansion is supported by significant investments and strategic decisions made in recent years. In late 2025, Air Algérie launched services between Algiers and Nantes, as well as Algiers and Strasbourg, strengthening ties with France. CEO Hamza Benhamouda announced plans to increase the fleet by 60 new aircraft in the long term, in addition to the 34 already on order, including 18 for Air Algérie and 16 for its subsidiary Domestic Airlines. In December 2025, the Minister of the Interior, Local Authorities and Transport, Saïd Sayoud, stated that Air Algérie and Domestic Airlines would receive nearly 20 billion dinars (~$154 million) in subsidies for 2026, an increase from the 12.6 billion dinars allocated in 2025.
Air Algérie's expansion includes a focus on both international and domestic connectivity. The airline plans to operate all new routes from Algiers' Houari Boumediene International Airport, with the aim of establishing it as a major intercontinental hub connecting Africa with Asia, Europe, the Middle East, and the Americas. The airline placed an order for 16 new ATR 72-600 aircraft and an ATR 72-600 flight simulator in July 2025, with deliveries scheduled between 2026 and 2028. These ATR 72-600 aircraft, equipped with PW127XT engines, will have 72 seats and will be operated by Domestic Airlines, focusing on domestic flights, particularly to the south of Algeria.
The expansion and service improvements are expected to benefit several sectors. International hotel chains and investors can capitalize on the growing tourism market as Air Algérie introduces new routes and enhances connectivity. The deepening energy partnership between Algeria and the EU presents opportunities for European energy companies seeking to diversify their gas supply. The airline carried nearly 8 million passengers in 2024 and expects to reach 8.5 million in 2025, with Domestic Airlines projected to carry 1.5 million passengers.
Looking ahead, Air Algérie is set to continue its expansion, with new routes to Guangzhou, China, and Kuala Lumpur, Malaysia, planned for the winter season 2025/2026. The airline also intends to resume flights to Addis Ababa and increase flight frequency on the Algiers-Abuja route. These strategic additions to the network are expected to facilitate trade, tourism, and cultural exchange, strengthening Algeria's position as a regional hub for air travel. The airline is also undergoing a legal and organizational restructuring designed to turn the carrier into a holding company, which is expected to improve operational efficiency and provide tax advantages.