Muscat : This was highlighted at the annual media forum jointly held by Oman Air and Oman Airports to review the progress made in 2024 toward financial sustainability and operational transformation.
His Excellency highlighted that Oman Air is now seeing the results of its wide-reaching transformation strategy. In 2024, the airline cut operating costs by 19 percent, increased operating profits by 51 percent, and transported more than 5.4 million passengers. Despite these advances, the airline still faces financial pressure, including RO 85 million in financing costs related to legacy debt, operational losses, and aircraft ownership.
Oman Air’s Chief Executive Officer Con Korfiatis shared that the airline posted its highest-ever passenger load in the first quarter of 2025 and achieved a 75 percent load factor with a growing point-to-point share of 45 percent. The airline’s ongoing restructuring includes fleet and network optimization, commercial strategy realignment, and a cost-reduction program projected to save RO 18 million annually.
The airline also confirmed it will officially join the Oneworld global airline alliance in June 2025, marking a significant milestone in expanding its international partnerships and market access.
The restructuring has led to the reduction of 500 expatriate staff, part of a broader initiative. In response to domestic concerns, Oman Air also announced that airfares on the Salalah-Muscat route have been capped to ensure affordability for local travellers.
Meanwhile, Oman Airports reported a similarly positive financial trajectory in 2024. Operating costs were reduced by 19 percent, leading to a 51 percent rise in operating profits and a record net profit of RO 23.5 million, a 15 percent increase over 2023. Total revenue generated by Oman Airports and its subsidiaries reached RO 142.6 million, with RO 114.5 million attributed to Oman Airports alone. The company also recorded its highest-ever EBITDA margin at 43 percent, and shareholder returns grew by 33 percent.
More than 5.4 million passengers travelled through Oman’s airports in 2024, and this number is expected to increase by 12.9 percent in 2025. The CEO of Oman Airports noted that while passenger growth and profitability are encouraging, challenges remain, particularly in optimising asset usage and improving ground handling services, where competition has driven down prices and affected the performance of service providers like Transom.
The company has also undertaken a review of commercial contracts and will take over management of the airport parking business. Salalah Airport, nearing full capacity, is now receiving direct flights from Europe.
