Wizz Air UK is establishing a base at Cardiff airport with a network of nine routes from next year.
The budget carrier will serve destinations including Alicante, Faro, Larnaca and Tenerife as well as seasonal summer routes to Corfu, Crete and Palma as well as Lanzarote and Sharm El Sheikh in winter.
Cardiff will become the airline’s fourth base in the UK, following Luton, Gatwick and Doncaster Sheffield.
The move will create 40 jobs at the Welsh airport plus 250 others in the supply chain, the airline said.
Annual capacity will increase by 350,000 seats as a single Airbus A321 is based at Cardiff.
Flights will be introduced in phases from March 2021 with one-way fares strating at £27.99.
Managing director Owain Jones said: “This reflects Wizz Air’s continued commitment to serving the UK market and generating economic growth, as we create local jobs, stimulate the tourism and hospitality industries and deliver on our promise of providing affordable, direct flights to exciting holiday destinations.”
Welsh transport minister Ken Skates said: “This is a positive step for the airport to emerge from the impact of Covid-19.”
Airport interim chief executive Spencer Birns added: “We know many people living in Wales are craving a well-deserved holiday after such a challenging year and these new flights will give so many more opportunities for holidays to be planned now that will give us all something to look forward to for next year.”