Oman Air: Strong Financial Results for 2023, Announces Fixed Prices & Transformation
Muscat, The Gulf Observer: Eng. Said bin Hamoud al-Ma’awali, Minister of Transport, Communications, and Information Technology, and Chairman of Oman Air, disclosed noteworthy financial achievements and strategic initiatives during the third media meeting to review Oman Air’s transformation plan.
By the conclusion of 2023, Oman Air marked a substantial 36 percent reduction in net losses alongside a commendable 30 percent increase in revenues compared to the preceding year, as revealed by Eng. Said bin Hamoud al-Ma’awali. These achievements, he highlighted, were predominantly attributed to the diligent execution of the second phase of the transformation plan, which commenced in March 2023.
Eng. Said bin Hamoud al-Ma’awali further announced adjustments in ticket pricing, emphasizing a fixed rate for Omani travelers in the economy class on the Muscat-Salalah route. The return ticket is set at OMR64, with a one-way trip priced at OMR35 throughout the year. Additionally, during the fall season, a round trip will cost OMR54.
Critical to the success of the transformation plan, Eng. Said bin Hamoud al-Ma’awali emphasized strategic alterations in flight destinations for the winter 2023 season, leading to a reduction in flights on select routes without closing any routes or grounding aircraft.
Underlining the stringent cost-cutting measures, Eng. Said bin Hamoud al-Ma’awali stated, “All unnecessary expenditures have been halted across departments, including sponsorships and several superfluous service contracts.”
Remarkably, Oman Air managed to close the fiscal year 2023 without resorting to additional bank loans or government guarantees. Eng. Said bin Hamoud al-Ma’awali noted a notable 9 percent improvement in Oman Air’s fleet load factors, facilitating the transport of over 6 million passengers across diverse destinations through more than 45,000 scheduled flights.
Looking forward to 2024, Oman Air aims to enhance its financial and operational performance through radical changes, including a restructuring of the route network and flight schedule, commencing in April 2024. Eng. Said bin Hamoud al-Ma’awali articulated plans to modernize core commercial and revenue activities to bolster competitiveness, attract travelers, and foster fruitful partnerships with international airlines based on quantitative analysis.
Eng. Said bin Hamoud al-Ma’awali concluded, “Our focus for the current year is on securing new agreements with international airlines, implementing specific pricing mechanisms, and instituting controls to ensure equitable benefit while rationalizing expenses and costs across departments and operations.”
