Oman: National carrier lost $5.19bln since 2011

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Muscat – Oman Air has lost RO2bn in operations since 2011 and RO185.6mn in 2023, the national carrier’s 2023 Annual Report revealed.

In 2023, the airline made significant strides in its recovery from the effects of the COVID-19 pandemic, with load factors improving to almost pre-pandemic levels, stated H E Said bin Hamood al Mawali, Chairman of Board of Directors, Oman Air, in the report.

“However, despite these commendable achievements, the stark reality is that the business in its current state remains unprofitable,” he added.

The long-standing mismatch between unit revenues (RASK) and unit costs (CASK) has resulted in the cumulative loss of RO2bn at the operating level since 2011. “This mismatch stands in glaring contrast to most regional peers, impacting the majority of routes, and demanding radical improvement,” H E Mawali stated.

The airline continued to burn cash in 2023, requiring an RO60mn injection from the government. Following RO392mn in loans taken on by the company in the last five years, the airline’s debt position as of December 2023 remained unsustainable.

“Long term liabilities (debt and leases) reached RO1.6bn in 2023 versus RO800mn-RO900mn in 2018-2019, and future cash flow projections are insufficient to fund operations and investment requirements without further state cash injections,” the chairman rued.