Oman Air has reported a loss of RO110mn due to a 38 per cent rise in fuel costs for 2011. This was despite a 35 per cent rise in revenues to RO311.3mn, according to a statement from the company announcing its full-year results.
According to the statement, passenger numbers increased 16 per cent to 3.8mn, seat factor rose to 73 per cent and freight revenues increased 28 per cent as the cargo segment grew 13 per cent.
Two new E175 aircraft joined the fleet, as the company also signed a codeshare agreement with British Midland International and added two new destinations in 2011.
H E Darwish al Balushi, Minister Responsible for Financial Affairs and chairman of Oman Air, said, "2011 was both a year of change and consolidation for Oman Air."
He said, "We have continued our programme of rapid expansion, introduced new aircraft and further enhanced the quality of our products and services.
"We have also invested in training, agreed to a number of partnerships and joint ventures and taken a series of measures to improve efficiency. Each of these steps has been taken with two key aims in mind: To ensure the best possible passenger experience for our customers and to improve profitability in the long run."
The statement added that the number of passengers carried by Oman Air increased 16 per cent in 2011 against a global increase of just 5.9 per cent, and despite the airline's increased capacity, seat factor increased 0.5 per cent to 72.7 per cent. It also served 500,000 more meals than in the previous year, a 13 per cent increase.
Being the service provider at Muscat International Airport, Oman Air handled 6.5mn passengers and 34,555 flights. There was also an increase in the number of Oman Air flights carried out in 2011 bringing it to 17,780 round trips.
Regarding the increase in fuel prices, the statement added, "It is important to note that the results for the year were impacted by a 38 per cent increase in fuel price which alone increased expenditure by RO37mn."
The statement added, "But for this steep increase in fuel price, the loss for the year would have been lower compared to the previous year, which is a significant achievement, especially considering the fact that the airline carried out a significant 21 per cent increase in capacity across the network."
© Muscat Daily 2012
