Gulf Air

Middle East regional carriers have profitable outlook for 2012

IATA’s latest 2012 industry forecast has airlines in the Middle East as the big winners, with the annual profit forecast for the region's airlines revised from USD300 million to USD500 million. It does come with a caveat though: a spike in oil prices could turn the forecast profit into a USD200 million loss for the region’s airlines.

In 2011, airlines in the Middle East reported a combined annual profit of approximately USD1 billion, according to IATA’s estimate. Despite the regional disruptions and spiralling price of oil, passengers in the region kept flying and Middle Eastern carriers increasingly developed their links with the rest of the world.

As they have been for years, financial results for Middle Eastern carriers were unevenly spread across the region.

Gulf Air further trims network as Arab Spring losses continue to mount

Another wholesale turnaround effort is underway at the perennially troubled Gulf Air. The airline, which lost more than BHD380 million (USD1 billion) between 2008 and 2010, suffered deep losses last year exacerbated by the Arab Spring. The exact scale of the losses has not been disclosed, but it is clear that the carrier’s multi-year turnaround and plan to break even has suffered a major setback.

A decade ago, Gulf Air was one of the largest players in Middle East aviation. As its multi-national ownership disintegrated due to various governments choosing to focus on their own national carriers, Bahrain was left as the sole owner. Locked out of its old hubs, Gulf Air faced a new and increasingly hostile competitive environment. It has also suffered due to high fuel prices, poor traffic demand and the recent unstable local and regional political situation, which continues to rumble on in Bahrain.

Forced out of Iran and Iraq, Gulf Air looks to Saudi market

Bahrain’s national carrier Gulf Air has extended its suspension of flights to Iran and Iraq, citing the “ongoing security situation” as prompting the decision. Gulf Air was forced to terminate services to Iran, Iraq and Lebanon in mid Mar-2011, due to security and political considerations relating to the Arab Spring uprising, which spread across much of North Africa and the Middle East over late 2010 and the first half of 2011.

The suspension for destinations in Iraq will continue to 31-Jan-2012 inclusive, while the suspension of services to Iran will stretch until and including 31-Mar-2012. At the time of the suspensions, Iran and Iraq were two of Gulf Air’s largest markets. The carrier operated four routes to Iran – Tehran, Mashad, Esfahan and Shiraz – and four to Iraq – Baghdad, Najaf, Erbil and Basra.

Middle East fleet outlook: widebody popularity increases, Airbus to grow market share

The 163 aircraft ordered at last week's Dubai Airshow will keep the Middle East region with almost as many aircraft on order as in service. While the show was marked by Emirates' order for 50 B777s, adding to the carrier's all-widebody fleet, widebody aircraft currently comprise just over half the region's fleet but are set to grow. Widebodies comprise more than 70% of aircraft on order in the region.

Boeing and Airbus will see their market share increase, but Airbus more so, eventually accounting for more than half of all aircraft in the region and Boeing accounting for just over a third. These latest aircraft orders add to an already substantial order backlog by airlines in the region. Most of the orders are concentrated in the hands of the Gulf region’s three largest sixth-freedom airlines: Etihad Airways, Qatar Airways and Emirates. The 163 orders from the show were from airlines and leasing companies and had a combined total value at list prices of just under USD32 billion.

Gulf Air Middle East and South Asian operations enhanced for Winter 2011 schedule

Bahrain’s Gulf Air continues to refine its flight schedule as it seeks to enhance the efficiency and attractiveness of its operations. Earlier this year, the loss-making carrier launched a new commercial initiative and advertising campaign to regain lost ground in its home market. Now it hopes that enhancing the convenience of its services will continue to attract passengers away from its rivals.