Oman Air cuts 1,000 jobs as part of restructuring efforts to boost efficiency

Muscat-based Oman Air has said it has cut 1,000 jobs in a major restructuring program, including 500 jobs held by ex-pat workers. The cuts, which represent almost a quarter of the airline’s total workforce, have been made to help it improve efficiency and financial sustainability, according to the carrier.

As reported by Gulf News, Saeed bin Hamoud Al Maawali, Minister of Transport, Communications and Information Technology and Chairman of Oman Air and Oman Airports, said the move was necessary to “align staffing levels with industry standards.” Before the restructuring, around 45 percent of the airline’s workforce consisted of non-core employees, a figure far higher than regional averages. Indeed, before the cuts, Oman Air previously employed about 4,300 people. This compares unfavourably to an industry benchmark of around 2,700 for airlines with similar fleet sizes, Al Maawali added.

The reductions made to the employee workforce included a voluntary retirement program, which was reportedly accepted by 310 of the employees involved. Meanwhile, other staff members were offered alternative positions within the airline, attracting the same salaries but with reduced benefits. Of the total cuts made to its overall workforce, 400 were Omani nationals.

Ahmed Zaki Bin Mohd Seth / ShutterstockAl Maawali has also commented on reports regarding the sale of aircraft to Qatar Airways, denying any direct transaction. He said the aircraft were sold through a public auction and involved older planes that were no longer in active use by the carrier.

According to ch-aviation, Oman Air currently operates a fleet of 28 aircraft, although seven Airbus A330-200s and A330-300s are currently listed as inactive, resumed retired. The remainder of the fleet comprises five Boeing 737-800s, 16 737 MAX 8s, four 737- 900ERs, one 787-8, and seven 787-9s.  According to industry reports, two of the 787-9s are to be leased to newcomer Riyadh Air, although this has not been confirmed by either carrier.

Mehdi Photos / ShutterstockThe airline currently serves 44 routes to 44 destinations across 25 countries. The airline carried 5.4 million passengers in 2024, down by around 12% over the previous year. In October 2024, it announced a new route between Muscat and Rome, directly serving Italy for the first time in its history. The airline’s flagship route to London-Heathrow (LHR) is served daily using the Boeing 787-9, which is operated in a three-class, 264-seat configuration.    

In separate news from the same country, the acting CEO of Oman Airports has recently outlined development plans for the old Muscat airport, including tenders to assess the site and proposals for new investment projects, such as establishing a company to support fish exports.

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