Dubai: Gulf Air, Bahrain’s national carrier, announced on Tuesday it cut its losses by more than 100 million Bahraini Dinar (Dh974 million) in 2013.
The 52 per cent cut in annual losses follows the airline’s 2013 restructuring strategy that has sought to return the ailing carrier to financial sustainability.
While the Bahraini airline announced a 28 per cent year-on-year cost savings and a 14 per cent increase in yields, it releases scant financial information. Details of the restructuring strategy’s performance were released in statement on Tuesday.
Gulf Air could not be reached for comment.
Under the restructuring strategy the airline has been able to reduce aircraft leasing fees, renegotiate supplier contracts and retire 14 aircraft.
By the end of 2013 more than 50 per cent of Gulf Air was less than four years old; however, the average age of the entire fleet was 5.7 years.
Gulf Air closed eight loss-making routes, opened five new destinations and increased the frequency of flights to eight existing destinations in 2013. It also cut its workforce by 27 per cent.
“Gulf Air realised a solid top-line revenue performance achieved by the implementation of a series of commercial initiatives, leading it to successfully outperform its 2013 restructuring target, which was presented to the Members of Parliament in November 2012, by BHD14.5 million,” said Shaikh Khalid Bin Abdullah Al Khalifa, Deputy Prime Minister and Chairman of Gulf Air’s Board of Directors.
Gulf Air is now targeting new destinations in the Middle East and North Africa, Eastern Europe and Asia, according to Tuesday’s statement. It is also considering a number of potential codeshare opportunities.
“A year on, Gulf Air is in a significantly stronger position, its restructuring is on-track and its financial rehabilitation has already reduced the requirement for treasury resources,” said Maher Salman Al Musallam, Gulf Air’s acting chief executive officer.
