Oman Air Reports 36% Reduction in Losses Amid Fiscal Year 2023

6 months ago Editor

During a press conference convened on March 31, 2024, H.E. Said Hamood al Mawali, Minister of Transport, Communications, and Information Technology of the Sultanate of Oman and Chairman of the Board of Directors of Oman Air, disclosed that the airline had successfully slashed its losses by 36% in the fiscal year 2023 compared to the corresponding period in 2022.

Highlighting the commendable achievement, Minister al Mawali elucidated that Oman Air witnessed a remarkable surge in revenues by 30% alongside a 9% increment in its load factor, thereby crossing the milestone of six million passengers. These advancements were coupled with prudent cost-cutting measures across non-essential areas.

A significant measure in this cost-cutting endeavor was the termination of Oman Air’s sponsorship of the Premier League football club Chelsea FC. The decision, according to the airline’s leadership, was executed without incurring any penalties.

photo source: businessfocus.org.uk

In line with its overarching strategy to revive its financial standing, Oman Air embarked on an extensive restructuring process over the past 12 months. As part of this strategic overhaul, the Omani flag carrier opted to downsize its long-haul fleet, promptly retiring its Airbus A330 aircraft. The last flight operated by this aircraft type was the Moscow to Muscat rotation on March 30, 2024.

At the time of the announcement, Oman Air’s fleet comprised four Airbus A330-200s and six A330-300s, some of which had been leased out to Qatar Airways for a specified duration.

photo source; flickr.com

Moreover, in January 2024, Oman Air revealed several network adjustments, signaling the discontinuation or reduction of frequencies on numerous routes, primarily to destinations in Pakistan, Sri Lanka, India, and Bangladesh. Concurrently, the airline’s low-cost subsidiary, Salam Air, expanded its capacity on routes to South Asia.

The strategic decisions taken by Oman Air underscore its commitment to navigating the challenges posed by the aviation industry, positioning itself for sustainable growth and financial resilience in the years ahead.