Oman Air expansion continues

Oman Air’s fleet and route map continued to grow in 2016, but the airline’s financial performance remained unclear after it announced its annual financial report.

Despite the document’s title, few details were given, notably in terms of profit and loss.

The Omani national carrier’s revenues in 2016 inched upwards by 1% compared to 2015, to 472 million rials ($1.2 billion), but no figures were given to compare against 2015’s net loss of 86 million rials. A request to the airline’s Muscat, Oman, headquarters for more details was unanswered.

The airline, which has been consistently loss-making, has been slowly reducing its deficit in recent years and had been aiming to reach breakeven by the end of 2017. The state-owned carrier’s losses have been underwritten by the Omani government, but that support has been dropping sharply.

In his comments to the airline’s annual general meeting, chairman Darwish Bin Ismail Bin Ali Al Balushi, noted that fluctuating oil prices continued to negatively affect the global economic outlook.

The company is regarded as a major pillar of the Omani economy, which is ramping up its tourism industry. Al Balushi estimated Oman Air’s contribution to Oman’s GDP in 2016 at 600 million rials, a considerable increase on 2015’s figure of 415 million rials.

Despite the uncertain economic backdrop, the airline’s growth has continued, said Al Balushi. The airline is aiming for a 70-strong fleet by 2020. It has reached 47 aircraft, with additions in 2016 including four Boeing 737-800s. The type forms the backbone of the airline’s fleet.

Capacity in 2016, in terms of ASKs, jumped 20% to 24.8 billion. However, this was matched by a 21% increase in passenger numbers, which rose to 7.7 million, compared to 6.4 million in 2015.

The fleet now consists of four Boeing 787-8s; six Airbus A330-300s; four Airbus 330-200s; five Boeing 737-900s; 23 737-800s; a single 737-700; and four Embraer 175s. Three more 737-800s are scheduled to join the fleet in 2017, while the first 787-9 arrived in March 2017 and a second is due this month.

The new aircraft will help support the continued growth of the route map, which added nine destinations in 2016 and two (Manchester, England, and Nairobi, Kenya) so far in 2017.

The company’s long-haul A330-200s and -300s are undergoing a cabin refurbishment eight years after their introduction, with the first returning to service in October 2016.

Cargo volumes also increased in 2016 increased to 159,618 metric tons (175,900 tons) compared to 138,972 tonnes in 2015.

The airline is also expected to benefit from the approaching completion of a new passenger terminal at the airline’s Muscat hub.
Alan Dron alandron@adepteditorial.com