Oman Air managed to increase its revenues for 2015 by 14 per cent to reach RO466m ($1.1bn) and reduce its losses by 21 per cent to $223m.

The carrier also reported carrying 6.1 million passengers, nearly a quarter more compared with the number of passengers carried in 2014.

Oman Air chairman Darwish al-Balushi attributed the loss reduction mainly to the fall in aviation fuel prices.

It is estimated that aviation fuel accounts for between 30 and 50 per cent of an airline’s operating costs.

The financial support provided to the carrier by the Omani government was cut down to $140m in 2015, and this trend is expected to continue. Oman Air has stated it aims to achieve break-even point by the end of 2017.

While the fall in oil prices has helped most airlines improve their revenues, it has significantly weakened Oman’s economy and that of the rest of the region. Inevitably, lower state revenues could have a negative impact on travel demand, which could affect Oman Air’s fiscal performance.

The airline further reported a 12 per cent increase in terms of cargo handled, which reached 140,000 tonnes in 2015.

Oman Air took delivery of nine aircraft in 2015, including its first Boeing 787-8 Dreamliners and Boeing 737s. It also placed an additional order for 20 units of the Boeing 737 Max single-aisle aircraft in 2015.