Oman Air reported a loss of RO110 million ($285.6 million) in 2011, blaming a 38 per cent increase in fuel prices.
The carrier described it as a “justified loss”, stating without the steep increase in fuel, the loss “would have been lower compared to the previous year”.
Passenger loads rose 16 per cent to 3.8 million, although that was aided by a 21 per cent capacity rise across the network and arrival of two E175 regional jets.
Revenues increased by 35 per cent to RO311.3 million but salary rises impacted the bottom line with total manpower costs totaling RO87.3 million.
Darwish bin Ismail bin Ali Al Balushi, Minister Responsible for Financial Affairs and Oman Air’s chairman said it was a year of change and consolidation for the airline.
New first and business class lounges opened at Muscat International Airport, along with a new business class lounge in Bangkok, although only three new services came on stream – Muscat-Zurich, Muscat-Zanzibar and Salalah-Dubai.
Oman Air has six B787 Dreamliners on order, which are scheduled for delivery in 2015.
Wayne Pearce succeeded Peter Hill as CEO of Oman Air in January.