National carrier Oman Air has reduced its fleet size to 32 aircraft as of 2024-end as part of its transformation strategy aimed at boosting operational efficiency and profitability.

As a result of a ‘rightsizing’ exercise, the fleet strength has been downsized by 29 per cent compared to the 2023 level, and a significant 40 per cent versus the 2019 level.

Earlier this week, wholly state-owned released its 2024 performance highlights, showcasing remarkable strides in financial sustainability, operational excellence, and commercial success as part of its ongoing transformation journey initiated in 2023. The airline’s comprehensive initiatives have resulted in significant progress, strengthening its position in the Middle East’s aviation sector while contributing to the nation’s economy.

One of the standout aspects of Oman Air’s transformation was its strategic approach to fleet management. This move was a deliberate measure to optimise operational efficiency and profitability. By focusing on high-demand, profitable routes, and retiring older, high-operating-cost planes, Oman Air effectively reduced its operational costs while maintaining high service standards. Despite the reduction in fleet size, the airline transported 5.4 million passengers in 2024, a figure reflecting a strategic realignment rather than a decline in capacity.

Oman Air reported an operating loss of RO 24 million (EBITDA) for 2024, reflecting a substantial 40 per cent improvement compared to 2023. Similarly, EBIT improved by 40 per cent versus 2019 levels and 25 per cent compared to 2023, totalling RO 76 million. This achievement underscores the success of the fleet modernisation strategy and other efficiency-driven initiatives.

Additionally, financial liquidity received a boost, enabling the airline to settle RO 45 million in long-overdue payables without resorting to borrowing. This reinforces Oman Air’s commitment to enhancing financial sustainability.

Operationally, Oman Air maintained a notable on-time performance rate of 92 per cent, placing it among the top two airlines in the Middle East and Africa. The Omanisation rate also increased by 5 per cent, reaching 79 per cent in 2024, reflecting the airline’s dedication to empowering Omani talent.

The airline’s commercial focus on point-to-point traffic also paid off, with the segment contributing to 40 per cent of total revenue in 2024, a significant increase from 27 per cent in 2019. Average fares increased by 9 per cent compared to 2019, with the load factor reaching 75 per cent, up 1 per cent from 2023.

Oman Air underwent a 24 per cent reduction in organisational structure, yielding annual financial savings of RO 18 million. This restructuring prioritised the replacement of expatriates with Omani nationals, further raising the Omanisation rate to 81 per cent. These efforts, combined with the streamlined fleet, have positioned the airline to support the growth of tourism and the national economy.

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