By Sarah Young

HETHROTH, England, June 10 (Reuters) - Saudi Arabia's new airline, Riyadh Air, launched its first flight to London on a Boeing aircraft on Wednesday, and chief executive Tony Douglas downplayed the impact of a war with Iran, suggesting the startup could benefit from travelers avoiding other areas in the Gulf.

The state-backed airline's inaugural flight to London's Heathrow Airport on a Boeing 787 Dreamliner comes at a time when war-related turmoil in the Middle East and rising jet fuel prices are negatively impacting the global aviation sector.

Douglas stated that Riyadh Airlines' smaller fleet provides some protection from the crisis.

When asked about launching the service during a time of war in the region, Douglas said, "I'm glad I don't have a fleet of 200 aircraft at the moment, because that presents a slightly different challenge."

Douglas added that the deliveries will bring the company's fleet to eight aircraft by the end of July, and that it plans to operate flights to 22 cities by March 2027.

Airlines across the Middle East, including Etihad Airways, Emirates and Qatar Airways, have been affected by airstrikes that have closed airports and disrupted travel since the war began in late February, while airlines elsewhere are grappling with consumer concerns about rising prices and jet fuel shortages.

Riyadh flights have so far avoided any direct disruption. Douglas said that the fact that airports in the Saudi capital have not closed has supported demand, as some travelers view Riyadh as a more stable gateway.

He added, "It may even reach the point where some consider it a safe entry and exit point."

Douglas, who ran Etihad Airways from 2018 to 2022, added that early ticket sales were encouraging, but declined to provide figures.

Riyadh Airlines was founded in 2023 and is the second national carrier in Saudi Arabia after Saudi Arabian Airlines. It is owned by the country's sovereign wealth fund. With up to 72 Boeing 787s, up to 60 A321neos, and 50 A350s on order, Douglas describes the company as "the largest global startup airline in modern history."

The airline is part of the oil-producing nation's plan to diversify its economy into new sectors such as tourism, logistics and technology.

When asked about ticket sales, Douglas said, "The primary demand actually comes from Saudi Arabian residents," adding that Riyadh's specially designed cabins and digital footprint were designed to attract the large number of young people under the age of 30 in the country.

Douglas went on to say that Riyadh Airlines aims to provide its services to more than 100 destinations by 2030. He added that the company has so far announced flights to Cairo, Dubai, Jeddah, Madrid and Manchester, and cities in India are likely to follow.