Losses at Oman Air were cut by 4% to less than RO 96 million in 2014.
This came as revenues rose by 4% to RO (Omani Rial) 398 million over 2013 as passenger carryings rose to 5.1 million from 4.9 million.
More than 23,500 round trips were recorded and capacity in 2014 rose to 15.2 billion available seat kilometres, with an average seat factor of 74.4%.
New aircraft were added to the fleet, with the introduction of the first Airbus A330s and Boeing B737s on order being delivered in the fourth quarter.
The airline also opened four new destinations while new business and economy class cabins were unveiled last November.
The Gulf carrier’s chairman Darwish Bin Ismail Al Balushi said he was looking for sustained progress in 2015, under the leadership of new CEO Paul Gregorowitsch.
“Oman Air is guided by a development plan which was endorsed by the board of directors in 2013,” the airline’s chairman said at its annual meeting in Muscat.
“This has seen our company invest significantly in new narrow-body and widebody aircraft, new destinations, technology and staff.
“The size of our fleet is expected to increase as per this plan to 50 aircraft by 2018, with a further increase to 70 aircraft being achieved by 2020.
“In parallel with the onset of this ambitious expansion, we have continued our focus on quality, productivity and increasing revenues over the full course of the year.
“Throughout, we have held fast to two fundamental aims: to ensure that every Oman Air customer experiences the best possible products and services, and to pursue our unwavering commitment to achieving profitability.
“It is therefore with a sense of satisfaction that we have carried more passengers to more destinations than ever before. We have increased our capacity and the number of round trips we have operated.
“And, crucially we have increased our revenues by four per cent to more than RO 398 million, and reduced our loss by four per cent to less than RO 96 million.
“As a result, Oman Air is a leaner, fitter and more efficient business. We are well positioned for continued expansion and have confirmed our advance towards profitability.
“Furthermore, a recent study on the contributions made by businesses to the national economy showed that Oman Air’s operational activities have delivered social and economic returns for the Sultanate of Oman of RO 420 million. This underlines the importance of the role played by the national carrier in fulfilling the social and economic objectives of the national economy.”