Oman Air’s 2016 financial results.

Oman Air has issued its 2016 financial statement.

Oman Air’s chairman H.H. Darwish bin Ismail bin Ali Al Balushi highlighted the introduction of 4 new Boing 737-800s leading to a total of 47 aircraft within the fleet. This lead to a total of 7.7million passengers using Oman Air,

Oman Air over Azaiba in Muscat
Oman Air over Azaiba in Muscat

an increase of 21% over 2015 and an increase in available ‘seat kilometres’ by 20% to 24.8billion. They note that the overall revenue per kilometre flown fell by 17%, due to ‘external factors’ though disappointingly these were not detailed given that this is a large drop. Revenues on scheduled services both domestic and international increased from Rial Omani 424.4 in 2015 to Rial Omani429 in 2016 an increase of just over 1%. Net expenditures increased from Rial Omani 534.163 in 2015 to 529.526 in 2016 through a general lift in lease, depreciation and employee overheads. The final profit and loss statement for the year showed a loss in 2016 of Rial Omani 129.820million from Rial Omani 86.333in 2015.

Oman Air Profit and Loss 2016
Oman Air Profit and Loss 2016

The increase in fleet was alongside an increase in destinations including China and increased frequency into France and Britain. Paul Gregorowitsch Oman Air’s CEO noted that the airline has contributed to Oman’s economy by close to Rial Omani 600 million (up from Rial Omani 420 in 2014) , a figure that they expect to rise to Rial Omani 990 million in 2017. Though given that they made a loss it would be interesting to know how the figures were arrived at.

The company noted the number of awards won in 2016 and say that they are well placed to continue with expansion plans and to grow Oman Air’s contribution to the economy.

Though not mentioned in the report the new Oman airline Salam Air commenced operations on 30th January 2017. Salam Air is owned through a holding company ASAAS, which itself is owned by various Oman government entities, therefore the two airlines share a common ultimate ownership. Salam Air will compete with Oman Air on internal flights and a limited number of international short haul flights. The impact on Oman Air will be limited by the capacity of Salam Air in the short term, which currently has 3 leased Airbus A320-200s.

Author: Tony Walsh

Book author including the current Bradt guide to Oman – edition 4

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