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Gulf Air is boosting its revenues, cutting costs and improving operational performance across various sectors, according to a top minister.
Cabinet Affairs Minister Hamad Al Malki, who is politically responsible for Bahrain Mumtalakat Holding Company (Mumtalakat), the kingdom’s sovereign wealth fund, was responding to a parliamentary question submitted by Strategic Thinking Bloc spokesman Khalid Bu Onk.
The minister outlined financial and strategic developments at the national carrier, revealing record-breaking revenue figures and a focused plan to reduce deficits.
A key indicator of the airline’s operational momentum was a 5.4 per cent increase in passenger traffic, reaching 6.2 million passengers in 2023.
The airline plans to expand its fleet with new aircraft to accommodate growing demand and enhance service on existing and new routes.
Mumtalakat’s statistical report, submitted through the minister, also highlighted an optimistic outlook for last year.
Preliminary projections suggest a 34pc growth in cargo revenue and a 53pc increase in operating profit compared to 2023, pending finalisation of the year’s financial statements.
Mr Al Malki said that to optimise profitability, Gulf Air’s board has undertaken a comprehensive restructuring of its route network, focusing on commercially viable destinations with strong potential for business, leisure and religious tourism.
“Seven unprofitable routes were terminated,” he said.
“Flight frequencies were reduced to seven other destinations.
“Twelve high-potential destinations across the Middle East, Far East, India and Europe were identified for increased service.”
He said Gulf Air’s restructuring strategy was built on enhancing operational efficiency and competitiveness.
“By aligning its network with market demands, the airline is positioning itself for long-term sustainability.”
Mr Al Malki also revealed that Gulf Air’s destination count will rise to 66 direct destinations, and more than 100 destinations through codeshare agreements, as part of a three-year network expansion plan.
“This will coincide with the gradual integration of new aircraft into the fleet.
“The government remains committed to supporting Gulf Air’s evolution into a modern, customer-centric airline,” added Mr Al Malki. “We are confident that with the right investments and strategic planning, Gulf Air will continue to play a vital role in Bahrain’s economic and tourism sectors.”
“Gulf Air is showing tangible progress in turning around its financial performance and solidifying its role as a national asset.
“These improvements are a testament to the strategic oversight provided by Mumtalakat and the dedication of Gulf Air’s management team.”
Gulf Air’s operating revenue surged to BD473.515 million in 2023 – a 10pc increase compared to 2022 – marking the highest revenue recorded since 2012.
Operating expenses rose from BD429.154m in 2022 to BD468.204m in 2023, while operating profit increased from BD1.510m in 2022 to BD5.311m last year.
The airline also generated other revenue from dividends in associate companies, interest on bank deposits and gains or losses from asset sales, amounting to BD5.523m in 2023 (compared to BD6.573m in 2022).
Financing expenses increased to BD39.491m in 2023 from BD30.180m in the previous year.
Currency exchange and associated fees amounted to BD3.856m, down from BD8.488m in 2022.
Shura Council members will be notified about the response during the weekly session on Sunday.
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