Muscat – National carrier Oman Air has managed to significantly reduce its losses in the last two years, as the airline’s revenues continue to increase due to rising passenger numbers after lifting of the COVID-19 restrictions in 2021.

In 2022, Oman Air’s net loss narrowed by 35 per cent compared to 2020 figures, while revenues increased 128 per cent.

Based on Oman Air’s forecasts, the airline expects its total revenues to increase 236 per cent in 2023 compared to 2020 revenues. This increase could help the national carrier reduce its net loss by 56 per cent in 2023 from 2020 levels.

Oman Air’s cargo revenues are expected to be 360 per cent higher this year compared to 2020 levels, while cargo capacity is likely to increase 160 per cent in 2023 compared to 2020 when the impact of the pandemic was at its peak.

In the context of operational performance in Q1 2023, the airline recorded a 182 per cent increase in passenger numbers, while its total revenue grew 88 per cent compared to the same period in 2022.

Addressing the Majlis A’Shura last month, Said bin Hamoud al Ma’awali, Minister of Transport, Communications and Information Technology, said His Majesty Sultan Haitham bin Tarik has ordered the appointment of a consultant to improve the performance of Oman Air.

He informed in his shura briefing that a consultant has been appointed and a study undertaken to finalise a strategy that would help improve the performance of the airline.

According to Ma’awali, a meeting was scheduled with the consultant in April and a follow-up meeting after three months to compile the first report that draws a roadmap for the executive management of the airline to work on. Following the meeting, the ministry will look into actionable options.

He added Oman Air’s performance is not satisfactory and that its Board of Directors, executive management and Oman Investment Authority are studying ways for improvement.

“There is a difference in how countries operate their national airlines. In Oman, the airline’s revenues are separate from those of the airport and ground handling companies, making it necessary to wait and see the consultant’s observations in this regard.”