Oman Air revenues top RO 750 million in 2023
Published: 03:06 PM,Jun 06,2024 | EDITED : 07:06 PM,Jun 06,2024
Oman Air achieved the highest on-time performance rate according to Cirium, with an outstanding rate of 94.3 per cent .
MUSCAT: National carrier Oman Air demonstrated substantial progress and recovery in its operations during 2023, reflecting a robust rebound from the challenges posed by the COVID-19 pandemic. The airline's total traffic volume, measured by revenue passenger kilometers (RPKs), surged by an impressive 94.1 per cent compared to 2022. This remarkable growth restored global total traffic for 2023 to 94.1 per cent of pre-pandemic levels. Notably, traffic in December 2023 alone rose by 25.3 per cent compared to December 2022, reaching 95 per cent of the December 2019 level.
Key operational highlights of Oman Air for 2023 further underscore the company's strides toward recovery and operational efficiency. Despite achieving revenues of RO 750 million, the airline recorded losses amounting to RO 184 million.
According to parent holding company Oman Investment Authority (OIA), a significant factor contributing to these losses was an increase in payables, which grew by approximately RO 94 million to companies and related parties such as Oman Airports, culminating in total payables of RO 240 million, the wealth fund stated in its newly published 2023 Annual Report.
Nevertheless, Oman Air implemented effective management strategies aimed at reducing losses and maximizing revenues. These efforts resulted in a noteworthy reduction in asset impairment by RO 90 million. Additionally, the airline secured government support amounting to RO 60 million, providing a crucial financial boost. Operational costs, however, rose by approximately RO 71 million.
Oman Air successfully transported over 7 million passengers in one month, marking a 60 per cent increase in passenger transport compared to 2022. This achievement was complemented by the strategic conversion of Boeing 737-800 aircraft from passenger to cargo, demonstrating the airline's adaptability and resourcefulness.
In 2023, Oman Air also signed a memorandum of understanding with Salam Air to enhance cooperation between the two companies, a move expected to further strengthen the airline's operational capabilities. Additionally, Oman Air achieved the highest on-time performance rate according to Cirium, with an outstanding rate of 94.3 per cent .
Other notable achievements included a 9 per cent improvement in load factor compared to 2022 and a remarkable 58 per cent growth in cargo operations over the previous year. These accomplishments underscore Oman Air's effective strategies in increasing operational efficiency and meeting market demands.
Key operational highlights of Oman Air for 2023 further underscore the company's strides toward recovery and operational efficiency. Despite achieving revenues of RO 750 million, the airline recorded losses amounting to RO 184 million.
According to parent holding company Oman Investment Authority (OIA), a significant factor contributing to these losses was an increase in payables, which grew by approximately RO 94 million to companies and related parties such as Oman Airports, culminating in total payables of RO 240 million, the wealth fund stated in its newly published 2023 Annual Report.
Nevertheless, Oman Air implemented effective management strategies aimed at reducing losses and maximizing revenues. These efforts resulted in a noteworthy reduction in asset impairment by RO 90 million. Additionally, the airline secured government support amounting to RO 60 million, providing a crucial financial boost. Operational costs, however, rose by approximately RO 71 million.
Oman Air successfully transported over 7 million passengers in one month, marking a 60 per cent increase in passenger transport compared to 2022. This achievement was complemented by the strategic conversion of Boeing 737-800 aircraft from passenger to cargo, demonstrating the airline's adaptability and resourcefulness.
In 2023, Oman Air also signed a memorandum of understanding with Salam Air to enhance cooperation between the two companies, a move expected to further strengthen the airline's operational capabilities. Additionally, Oman Air achieved the highest on-time performance rate according to Cirium, with an outstanding rate of 94.3 per cent .
Other notable achievements included a 9 per cent improvement in load factor compared to 2022 and a remarkable 58 per cent growth in cargo operations over the previous year. These accomplishments underscore Oman Air's effective strategies in increasing operational efficiency and meeting market demands.