Travel, Tourism & Hospitality

Oman’s aviation ecosystem enters new phase of growth, global expansion

MUSCAT
Oman’s aviation ecosystem enters new phase of growth, global expansion

Oman Airports, Oman Air, and SalamAir revealed during a joint media briefing held today in Muscat that they achieved positive performance in 2025.

This performance was driven by revenue growth, enhanced operational efficiency, and the expansion of destination networks and services, reflecting the entry of Oman's aviation ecosystem into a new phase of growth and strengthening its presence on the regional and international aviation map, reported Oman News Agency.

The three companies emphasised that their strategic roadmap for the 2026–2030 period focuses on building an integrated aviation ecosystem that supports sustainable growth and enhances global connectivity, contributing to solidifying the Oman's position as an emerging regional hub in the aviation and tourism sectors.

Said Al Maawali, Minister of Transport, Communications and Information Technology, stated in his speech during the briefing that the aviation sector is a key pillar for achieving the objectives of Oman Vision 2040 and undertakes a crucial role in enhancing the competitiveness of the Omani economy regionally and globally.

He clarified that the government is working with a strategic vision to rebuild the aviation sector and boost its competitiveness.

He stated that the transformation plan, since its inception in September 2023, has brought about a qualitative shift in cost control, performance improvement, productivity enhancement, and financial revenue optimisation.

He confirmed that Oman Air achieved operating profits in 2025 for the first time in approximately 15 years and reduced the level of government-guaranteed debt by roughly RO 92 million ($239 million) since the beginning of the transformation plan in September 2023.

Al Maawali pointed to the improvement in operational efficiency and the strengthening of international confidence in Omani capabilities.

Oman Airports expanded regionally by providing operational and consultancy services for the Karbala Airport project in Iraq.

Furthermore, Transom expanded internationally by delivering air cargo, ground handling, and hospitality services in Tanzania.

Meanwhile, Oman Air joined the "Oneworld" alliance, granting it access to over 900 global destinations, and five new destinations were launched.

Regarding the Muscat Airport City project, he explained that work has commenced on this project as a cornerstone for transforming Oman into a regional air logistics hub, in cooperation with several entities.

Several projects are currently in the establishment and construction phases, such as storage and air cargo facilities.

He noted that the project will broaden the economic scope of the aviation sector beyond flights and passengers, providing an integrated environment that combines logistical, commercial, and tourism services within a single interconnected ecosystem.

He added that the government's acquisition of SalamAir comes within the framework of a strategic direction aimed at reorganising the aviation sector and enhancing its competitiveness on sound foundations.

He affirmed that both Oman Air and SalamAir will continue to operate independently, administratively and financially, retaining their respective fleets and commercial activities.

The performance of both companies will remain subject to the oversight of the Civil Aviation Authority to ensure competitiveness and consumer protection.

Travel destinations for each company will be managed and promoted while adhering to their respective classification frameworks: SalamAir as a low-cost carrier and Oman Air as a full-service carrier.

This is in addition to working toward integration to expand the national air connectivity network and increase the number of destinations and passengers.

During the briefing, the Minister of Transport, Communications and Information Technology announced that work is underway to establish the first integrated aircraft maintenance workshop.

Efforts are also ongoing to establish and develop a domestic aviation network connecting the governorates, as well as to build and upgrade several domestic airports, particularly in tourist areas such as Al Jabal Al Akhdar, Masirah Island, Sohar, and other locations across the governorates of Oman.

He emphasised that these airports and the domestic aviation network will enhance internal air connectivity, open new horizons for the tourism sector, and bring essential services closer to citizens, in addition to paving the way for future connecting routes with nearby regional and international areas.

The Minister added that the focus in the upcoming phase is on enhancing financial sustainability, increasing growth, and expanding regionally and internationally. The aviation sector is expected to undertake a vital role in enabling the growth of economic diversification sectors, such as tourism and logistics, and in strengthening Oman's position as a regional and international destination for travel and tourism, as well as a gateway for logistical services.

Al Maawali emphasised that Oman has  undertaken a positive role amidst the impacts of current geopolitical conditions on the region's aviation and port sectors.

This was achieved by ensuring the continuity of supply chains across the region and facilitating air traffic for passengers through an increased number of flights and accommodating a large number of airlines and private jets.

Regarding prices on the Salalah–Muscat route, he indicated that Oman Air fares for Muscat–Salalah reached RO 54 during the Khareef Dhofar season and RO 64 year-round.

As for SalamAir's new fares for the Muscat–Salalah route, they reach RO 9.99 for a one-way trip without luggage, RO 18.99 as the lowest one-way fare with a 20-kilogram bag, RO 27.99 as the lowest round-trip fare without luggage, and RO 35.99 as the lowest round-trip fare with a 20-kilogram bag.

For his part, Saud Al Hubaishi, Chief Operating Officer at Oman Airports, stated that the company recorded growth in passenger traffic, reaching approximately 15.2 million passengers across various airports in the Oman, alongside a 4 percent increase in air cargo volumes.

This performance is an indicator reflecting the growing demand for travel and the enhanced efficiency of operational processes.

He added that Oman Airports continued to support the expansion of its route network by attracting new airlines and deepening partnerships with existing carriers.

In addition, the company advanced the development of strategic destinations in coordination with Oman Air, contributing to connecting Oman with more regional and international markets.

On his part, Con Korfiatis, CEO of Oman Air, explained that the company achieved positive results within the comprehensive transformation programme launched in 2023.

The airline reported an EBITDA of approximately RO 3.2 million for 2025, positive for the first time in 15 years.

The airline also achieved an RO 27 million reduction in bank loans, marking the first decline in debt levels since 2009.

He noted that the company carried nearly 5.8 million passengers in 2025, an increase of 7 percent over 2024, achieving an 82 percent load factor and a year-on-year growth in direct (point-to-point) travel traffic of 34 percent.

He emphasised that these results were achieved thanks to strategies optimising the network and maximising fleet utilisation efficiency.

The CEO of Oman Air stated that the airline witnessed significant expansion in international destinations in 2025 through the launch of direct routes to Amsterdam, Baghdad, Copenhagen, and Taif, in addition to a new direct route connecting Salalah and Moscow.

This is alongside the announcement of 5 additional routes for 2026. He explained that the airline currently serves 45 destinations with a fleet of 33 aircraft, which is planned to grow to 39 aircraft by 2029.

Adrian Hamilton-Manns, CEO of SalamAir, stated that the company continues to reinforce its role as the national low-cost carrier, recording strong operational and financial performance in 2025.

The airline transported more than 3.4 million passengers and operated over 22,000 flights across a network comprising more than 40 destinations, maintaining an on-time performance rate of 83 percent.

He pointed out that SalamAir generated approximately RO 137 million in revenue during 2025, reflecting its role in supporting the aviation and tourism sectors, and enhancing air connectivity through expansion into new markets in Africa, Asia, and Europe.

The SalamAir CEO explained that the airline's expansion plans included entering emerging markets in Africa, Asia, and Europe, introducing destinations such as Port Sudan, Nairobi, Kigali, Vienna, and Medan.

This was alongside executing plans to expand the fleet to 18 aircraft in 2026 and 25 aircraft by 2028, to support plans for growth and expansion of the operational network.