Oman Air Turns Profitable After 15 Years: What This Means for Investors and Business Growth in Oman
Muscat: Oman Air, which initiated a comprehensive transformation programme in 2023, reported an EBITDA of RO 3.2 million for 2025, marking the first time in 15 years the airline has achieved a positive EBITDA.
In 2025, the airline also recorded a RO 27 million reduction in bank loans, the first decrease in debt levels since 2009. Oman Air’s EBITA stood at RO 3.2 million, while its net loss narrowed significantly to RO 52.2 million, down from RO 72 million in 2024.
These financial improvements are accompanied by a 6% reduction in CASK (Cost Per Available Seat Kilometer), reflecting the ongoing benefits of its transformation initiatives.
Passenger traffic increased by 8% in 2025, with Oman Air carrying 5.8 million passengers and achieving an 82% load factor—an outcome driven by successful network optimization and enhanced fleet utilization strategies. The airline also expanded its point-to-point flights by 34% year-on-year as part of its efforts to boost tourism to Oman.
Oman Air strengthened its global connectivity in 2025 by launching new direct international routes to Amsterdam, Baghdad, Copenhagen, Taif, and a new Salalah-Moscow route. Five additional routes for 2026 have already been announced. Currently, the airline serves 45 destinations with a fleet of 33 aircraft, which is planned to grow to 39 by 2029.
In a recent presentation, the CEO highlighted that Oman Air’s network now extends to 900 destinations through its membership in the Oneworld alliance. The focus remains on expanding direct flights, which now constitute 64% of total flights—a 34% increase from 2024. The load factor improved to 82%, up 10 percentage points from the previous year.
Fare bundles were diversified to include options without check-in baggage, and the airline launched new digital services supported by a modern call centre. Additionally, a new economy class menu is set to be introduced.
2026 Highlights:
- Addition of a Boeing 737 Max 8 to the fleet
- 1.4 million passengers carried
- 23% increase in passengers traveling to Salalah
- 19% increase in point-to-point passengers
Oman Air’s strategic transformation continues to drive improved financial performance and expanded connectivity, positioning the airline for sustained growth.
Special Analysis by Omanet | Navigate Oman’s Market
Oman Air’s turnaround, marked by positive EBITDA for the first time in 15 years and reduced debt, signals a transformational shift in Oman’s aviation sector. For businesses, this suggests increased connectivity and tourism-driven opportunities, while investors should watch for growth in international routes and fleet expansion as indicators of a robust, expanding market. Entrepreneurs can capitalize on the rising passenger volumes and digital service enhancements to innovate in travel-related services and hospitality.
