Oman Air posts positive EBITDA after 15 years

MUSCAT, APRIL 13

Oman's national carrier, Oman Air, has reported a significant turnaround in its financial and operational performance, carrying 5.8 million passengers in 2025 and achieving positive EBITDA for the first time in over 15 years. The results underscore the airline’s restructuring drive aimed at restoring financial sustainability and supporting Oman’s broader economic diversification goals. At the joint media briefing held on Monday, the national carrier outlined a strategy focused on cost discipline, network optimisation and enhanced passenger experience.

According to the presentation, the airline recorded a 34 per cent year-on-year increase in point-to-point traffic, with such passengers accounting for 64 per cent of total volumes. Load factor also improved to 82 per cent, reflecting stronger demand and more efficient capacity deployment.

Con Korfiatis, Chief Executive Officer, said the airline’s turnaround is gaining traction after a period of sustained losses. “We have taken decisive steps to restore financial viability while repositioning Oman Air as a strategic enabler of tourism and economic diversification”, he said. “The positive EBITDA of RO 3.2 million marks a critical milestone in our recovery journey”.

The airline’s operating loss narrowed significantly to RO 52.2 million in 2025, compared with RO 72 million in 2024 and RO 103 million in 2023, indicating steady progress in cost management. Unit cost (CASK) improved by 6 per cent year-on-year to RO 25.6 million, while total bank debt declined for the first time since 2009, reaching RO 27 million.

Korfiatis emphasised that cost reduction and fleet optimisation remain central to the strategy. “Our focus is on disciplined growth — improving efficiency, optimising our fleet and ensuring that every route contributes to profitability”, he said. “We are not pursuing expansion for its own sake, but for sustainable value creation”.

Network expansion, however, remains a key pillar. The airline has announced new destinations including Amsterdam, Copenhagen and Baghdad in 2025, followed by Sochi, Taif, Singapore and Tashkent in 2026, alongside increased frequencies on key routes such as Dubai and Salalah. The planned entry into the oneworld alliance is expected to further strengthen global connectivity and feed traffic into Oman.

Passenger growth has also been supported by improved service offerings. Initiatives include a revamped Oman Air Holidays platform, expanded ancillary services and a new digital servicing system and call centre. The airline has also introduced a Net Promoter Score (NPS) programme to track customer satisfaction.

“We are raising the bar for guest experience while maintaining affordability”, Korfiatis added. “Our investments in digital platforms and service quality are already translating into higher customer satisfaction and repeat business”.

On the domestic front, Oman Air has prioritised accessibility, maintaining fixed fares for Omani nationals on the Muscat–Salalah route during the Khareef Dhofar Season and throughout the year. Capacity and passenger volumes to Salalah have posted strong double-digit growth since 2022.

The airlines also demonstrated resilience amidst regional disruptions in early 2026, maintaining uninterrupted operations across 80 per cent of its network while adding 1,378 extra flights and carrying over 393,000 passengers during the period. Cargo capacity surged by 490 per cent to support the flow of essential goods.

Looking ahead, Oman Air plans to deepen its transformation through digitalisation, fleet modernisation and network expansion, while continuing to enhance in-country value and develop local talent. Omanisation levels have reached 80 per cent, supported by training and leadership succession programmes.

“Our ambition is clear”, the CEO said. “We are building a financially sustainable airline that delivers long-term value to Oman’s economy while offering world-class connectivity and service”.

The performance signals a pivotal shift for Oman Air as it seeks to balance growth with financial discipline, aligning closely with the objectives of Oman Vision 2040.