Oman Air, the Gulf state’s flag carrier, last year cut its fleet size by 29 percent year on year to 32 aircraft, lowering its operational cost as part of its turnaround strategy. As informed by a news report in AGBI.
The airline carried 5.4 million passengers, down 13 percent year on year. Annual Ebitda rose by 40 percent to OR24 million ($62.2 million), while earnings before interest and taxes improved by 40 percent year on year to OR76 million.
The financial results performance were supported by increased service to profitable destinations and a higher load factor.
The airline also settled long overdue payables of OR45 million without resorting to borrowing.
The average fare remained stable year on year at OR65, but the load factor rose 1 percent year on year to 75 percent.
The restructuring of the operations and workforce by 24 percent led to savings of OR18 million. The replacing of expat workers with Omani nationals was prioritised, resulting in the Omanisation rate hitting 81 percent.
In August 2023, Oman Air announced restructuring plans to reduce ongoing losses and debt accumulation.
The airline cancelled flights to some South Asian cities in January 2024 to improve its financial performance and strengthen its position in a competitive market.
