Oman Air made significant progress and recovery in its operations in 2023, showing a strong rebound from the challenges brought by the COVID-19 pandemic. The airline's total traffic volume, measured by revenue passenger kilometers (RPKs), increased by an impressive 94.1% compared to 2022. This growth brought global total traffic for 2023 to 94.1% of pre-pandemic levels. In December 2023 alone, traffic rose by 25.3% compared to December 2022, reaching 95% of the December 2019 level.
Key operational highlights of Oman Air for 2023 further emphasize the company's progress towards recovery and operational efficiency. Despite generating revenues of RO 750 million, the airline experienced losses totaling RO 184 million.
The Oman Investment Authority (OIA), the parent holding company, attributed a significant portion of these losses to an increase in payables, which rose by approximately RO 94 million to companies and related parties like Oman Airports. This led to total payables of RO 240 million, as stated in the newly released 2023 Annual Report.
Oman Air effectively implemented management strategies to reduce losses and increase revenues. This led to a significant decrease in asset impairment by RO 90 million. Furthermore, the airline received government support totaling RO 60 million, providing essential financial assistance. Despite this, operational costs rose by around RO 71 million.
Oman Air successfully transported more than 7 million passengers in a month, representing a 60% rise in passenger transport compared to 2022. This milestone was supported by the strategic conversion of Boeing 737-800 aircraft from passenger to cargo, showcasing the airline's adaptability and ingenuity.
In 2023, Oman Air entered into a memorandum of understanding with Salam Air to enhance collaboration between the two companies, which is anticipated to bolster the airline's operational capabilities. Additionally, Oman Air achieved the highest on-time performance rate, as reported by Cirium, with an impressive rate of 94.3%.
Other notable accomplishments included a 9% increase in load factor from 2022 and a remarkable 58% growth in cargo operations compared to the previous year. These achievements highlight Oman Air's effective strategies in enhancing operational efficiency and meeting market demands.
