Company chairman Ahmad Bin Abdul Nabi Macki, who is also Oman’s Minister of National Economy, says the airline had incurred the losses as a result of rapid expansion in recent months.

The company was abruptly made Oman’s national carrier in 2007, when Muscat withdrew its stake in Gulf Air. Since then, it has placed orders for 14 new planes, opened long-haul routes to Bangkok and London, and raised the salaries of many employees.

Macki says the company does not envisage a return to profit for some time, while the expansion continues.