Gulf Air restructuring reduces losses by 50% in 1Q2013
Gulf Air reduced overall losses by 50% year-on-year in 1Q2013, according to Bahrain News Agency. The airline attributed the result to a 21% reduction in expenditure through lower aircraft leasing fees, flight-related charges and staff expenses and the suspension of loss-making routes. The carrier said its passenger yield increased 21% in the quarter due to network and fleet realignment, strong regional demand and improved sales in Bahrain. The airline completed its network realignment designed to strengthen Middle East and North Africa routes while maintaining connections to key destinations in Europe, Pakistan, India and eastern Asia. The carrier also completed negotiations to return surplus aircraft to lessors and now operates a fleet of 26 Airbus narrow and widebodies. Gulf Air said its first quarter results reflect the progress of its restructuring programme in improving productivity through increasing revenue and reducing manpower and operating costs. The airline said it will continue to implement the strategy, reduce expenditure, upgrade its in-flight products, explore commercial opportunities across its network and seek additional capacity opportunities in the region, including additional frequencies.