Muscat – Oman Air has embarked on a notable transformation journey, witnessing a substantial improvement in its financial health and operational efficiency at the end of 2023. The national carrier reported a 36% decrease in net losses and 30% increase in revenues compared to the previous year.
H E Said Hamood al Mawali, Minister of Transport, Communications and Information Technology and Chairman of Board of Directors of Oman Air, shared these figures at the third media briefing on Saturday dedicated to discussing the airline’s ongoing transformation initiatives.
According to H E Mawali, the positive results stem from the successful execution of the second phase of the airline’s transformation programme initiated in March 2023. This phase included strategic adjustments to flight destinations for the 2023 winter season, leading to the optimisation of flight frequencies on certain routes due to underperformance, without necessitating the suspension of any routes or the sale of aircraft.
The minister highlighted rigorous cost-control measures, including cessation of all non-essential expenditures, such as sponsorships and unnecessary service contracts. A significant step in this direction was the termination of a sponsorship agreement with Chelsea FC.
Oman Air concluded fiscal year 2023 without resorting to additional bank loans or government guarantees. The airline’s load factor improved 9%, successfully flying over 6mn passengers across its network and operating more than 45,000 scheduled flights.
In a move to enhance affordability and accessibility for Omani citizens, H E Mawali announced a fixed price of RO64 (return) and RO35 (one-way) for economy class tickets on the Muscat – Salalah – Muscat route, and RO54 during the khareef season (return).
Looking ahead to 2024, Oman Air is set to implement a series of fundamental changes to further enhance its financial stability and operational efficiency. These include a strategic overhaul of the route network and flight schedules commencing in April 2024.
