Oman Air released its annual financial report for the year ending December 31, 2011. Reviewing the report on behalf of the board of directors during the extraordinary general meeting and the 30th ordinary general meeting in Muscat, Darwish bin Ismail bin Ali Al Balushi, the Minister Responsible for Financial Affairs, Chairman of Oman Air’s board of directors.

Marking the following highlights:

• Increase of revenue by 35%
• Increase in the number of passengers to 3.8 million, or 16%
• Increase in the seat factor  up to 73%
• Increase of freight revenues by 28%
• The joining of two E 175 regional jet aircraft
•   Code-share agreement with British Midland International
• Addition of  two new destinations
• Loss of US$ 286 Million (RO 110 Million)

Al Balushi said: “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. Each of these steps has been taken with two key aims in mind: to ensure the best possible passenger experience for our customers and to improve profitability in the long run.”

The number of passengers carried by Oman Air increased by 16 per cent in 2011, against a global increase in demand of just 5.9 per cent, and despite our increased capacity, seat factors increased by 0.5 per cent to 72.7 per cent.

Oman Air as the service provider in Muscat International Airport,  handled 6.5 million passengers along with 34,555 flights.  An increase in the number of Oman Air flights carried out in 2011 bringing it to 17,780 round trips.

Losses
The company reported a loss of RO 110 million during the year.  According to the airline this is the result of a 38 per cent increase in fuel price which alone increased the expenditure by RO 37 Million.

However, the airline reported improved yields and seat factors despite higher capacity. Witnessing revenue increase by 35 per cent to RO 311.3 Million.

Priority to national man-power development
The Company conducted a company-wide compensation study and increased staff salaries in line with the industry and covering  the increase in cost of living. Resulting in a RO 8 million increase.  Total manpower cost in 2011 was RO 87.3 Million.

Al Balushi mentioned: “The company continues with its initiative towards Omanisation process, within its various departments and activities, including technical and higher management positions.”

According to to the airline the Government of Oman shall continue to support the expansion strategy for Oman Air.

As for the cargo business, Oman Air has increased the tonnage carried by 13%. As a result, cargo revenues increased by RO 4.1 million.

Source: Oman Air

1 Omani Rial (RO) = US$ 2.6