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Gulf Air reduced losses by more than 50% in 1H2013

29-Jul-2013 2:58 PM

Gulf Air reported (27-Jul-2013) it reduced overall losses by more than 50% year-on-year in 1H2013 primarily due to a 26% reduction in costs across the company, "sound" revenue results and an increase in yields of more than 6% in 2Q2013. The airline performed 15% ahead of its financial target for 1H2013 and it expects to realise additional improvements as it removes excess operational costs, renegotiates contracts with certain vendors and suppliers and fine-tunes its network. Gulf Air chairman Khalid bin Abdulla Al Khalifa said, "The on-going restructuring has been implemented across the organisation and modified every facet of the national carrier's operations with a view to putting Gulf Air on a path towards sustainability and aligning it to the Kingdom's evolving business requirements. The Board of Directors remain optimistic about the future performance of Gulf Air based on the results to date." Bahrain's Minister of Transport and Gulf Air executive restructuring committee chairman Kamal bin Ahmed Mohammed said, "Gulf Air's results, achieved in an operating environment characterised by volatility and severe competition, reflect a significant achievement for the airline and demonstrate the effectiveness of the restructuring strategy. As a result of fundamental changes made across all areas of the organization in the last six months, the airline is firmly on-track towards delivering its long-term strategic goals...Our main priority over the next six months is to further reduce operational costs and increase sales efficiency. In parallel, we will continue to meet customer needs as well as improving the product to deliver more value on a consistent basis thereby strengthening trust and reinforcing the airline's position as the carrier of choice." [more - original PR]