Half-year results show that restructuring efforts at Gulf Air are bearing fruit as the struggling airline posts strong financial and operational performance.
Led by the new Chairman Shaikh Khalid bin Abdulla Al Khalifa, Gulf Air has recorded its best first half-year results, cutting overall losses by more than 50 percent compared to the same period last year. The airline has managed to achieve a 26 percent reduction in year-on-year costs throughout the organization and increase revenues by 6 percent. As a result, financial target for the first six months of the year were exceeded by 15 percent.
During this period, Gulf Air strengthened its Middle East and North Africa operations and continued to operate one of the largest regional networks. Its leadership position in the region allowed it to overcome stiff competition posed by smaller regional carriers. As the airline decided to maintain its strategic presence on selected destinations in Europe and Asia while fine tuning its network, the airline was able to offer quality services on high-demand and high-yield point-to-point routes. Gulf Air also completed the realignment of its fleet to match the new business requirements.
Expressing his delight at the turnaround, Kamal bin Ahmed Mohammed, minister of transport and chairman of Gulf Air’s Executive Restructuring Committee commented;
“Gulf Air’s results, achieved in an operating environment characterized by volatility and severe competition, reflect a significant achievement for the airline and demonstrate the effectiveness of the restructuring strategy.”
However, the airline expects to continue ongoing financial and operating restructuring improvements to regain its former glory. It is analysing ways to further reduce operational costs, renegotiate contracts with some vendors, and optimize its network. The airline is also expected to focus on increasing its sales efficiency, while at the same time also consistently delivering a service valued by customers.
Developing synergies with key stakeholders is a top priority for management as the airline is viewed as an important national infrastructure asset for Bahrain’s efforts at towards its sustainable economy.