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Oman Air releases annual report showing worst loss since returning to long-haul

Posted 26 April 2017 · Add Comment

Oman Air has revealed in its annual report an operating loss of 80% to RO120 million ($312 million) last year, and a net loss of almost RO130 million.

The airline had been making a steady increase net profit up to 2007 but in the same year the Omani government changed its air transport strategy by withdrawing from multinational Middle Eastern carrier Gulf Air to focus on developing Oman Air.

This involved taking it under state control, and out of private ownership, in order to place the airline as a long-haul operator and modernise its fleet with Airbus A330s, and acquiring Boeing 787s.

But the airline has been unable to reverse its poor financial performance, and its 2016 net loss is the worst it has witnessed.

The company's 2016 annual report puts accumulated losses at RO817 million and states that, at the end of last year, its liabilities exceeded its current assets by RO192 million.

Chief executive Paul Gregorowitsch said: “ "We didn't reach our targets for 2016 but we have ambitious plans for the current year.”

He added net yield for the airline fell by 17% over the network owing to a number of external factors. He said: "Enhancing our fleet and network is the way to continue to stimulate demand and…stand out in an increasingly-crowded market place.”

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