Oman Air reports increased loss in 2011

Oman Air reported (08-Apr-2012) the following financial and traffic highlights for 2011:

• Revenue: OMR311.3 million (USD807.5 million), +35% year-on-year;
• Cargo revenue: OMR4.1 million (USD10.6 million), +38%;
• Loss: OMR110 million (USD285.3 million), compared with a loss of OMR78 million (USD202 million) in 2010;
• Passenger numbers: 3.8 million, +16% year-on-year;
• Load factor: 72.7%, +0.5 ppts;
• Capacity: +21%;
• Cargo traffic: +13%.

The carrier stated that its loss was impacted by a 38% increase in fuel costs to OMR37 million (USD96 million) while salary costs increased as the company increased staff salaries. The carrier added that it also reported improved yields in the period. The carrier added two E175s to its fleet during the period, added two new destinations (Zurich and Zanzibar) and commenced a codeshare agreement with bmi. [more - original PR]

Oman Air: "The losses are part of the growth model for the airline and represent investment by the government to build Oman Air to a size where it would be a profitable entity. Oman Air with its capacity increase contributes significantly to the non oil economic growth and tourism for Oman. The capacity expansion has also created jobs and more importantly learning and employments opportunities for pilot, engineers and airport operations. The Government of Oman therefore would continue to support the expansion strategy for Oman Air," Company statement, 08-Apr-2012.

Oman Air: "2011 was a year of both change and consolidation for Oman Air. 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 a number of partnerships and joint ventures and taken a series of measures to improve efficiency," HE Darwish bin Ismail Al Balushi, chairman of board of director. Source: Company statement, 08-Apr-2012.