Bahrain’s national carrier Gulf Air has cut its year-on-year losses by more than 30 per cent in the first half of the year as it continues to benefit from the restructuring of its business.

The airline has stated that it increased its overall revenue by 10 per cent in the first half of the year, compared with the same period in 2013. This has been achieved by increasing operations and improving load factors.

The carrier said it has focused on high-demand and high-yield, point-to-point routes, with most of its connections linking Bahrain to Middle East and North African (Mana) destinations, with some strategic links to Europe and Asia.

The historically loss-making airline started restructuring its business model shortly after the government provided the carrier with a BD185m ($494m) bailout in October 2012.

The troubled airline ran into severe difficulties in 2011, when key routes were temporarily suspended by the Bahraini government during the political uprisings that year. Unfortunately, the same routes were the airlines’ most profitable destinations.

Gulf Air’s net loss after one-time restructuring costs, impairments and government grants declined to BD12m in 2013, from BD81.5m in 2012.

Loss-cutting measures included cancelling unprofitable routes, reducing staff and aircraft fleets.