Gulf Air facing losses of up to $1bn over next two years

CARRYING LOSSES: Gulf Air was in the red in both 2006 and 2007. (Getty Images)

A leaked internal memo from Gulf Air shows the Bahraini carrier has forecast nearly $1 billion in losses over the next two years, although the company has since dismissed the data as inaccurate and out of date, UAE daily The National reported on Monday.

The airline will sustain losses of 131.7 million Bahraini dinars this year followed by 226.3 million dinars next year, according to a document leaked to the local press, the paper said.

The losses are expected to gradually subside over the next six years, down to 22.6 million dinars in 2013. In that time, fuel costs are expected to more than double for the Manama-based carrier, it added.

Company officials acknowledged the authenticity of the memo but downplayed its relevance, saying it had never been presented to the board or approved as an official forecast, the paper said.

“It is woefully inaccurate and nowhere near to being a fair reflection of the current situation at Gulf Air,” the paper quoted Adnan Malek, a public relations manager at the carrier, as saying.

According to the leaked memo, Gulf Air has already weathered substantial losses: 111.8 million dinars in 2006 and 115.9 million dinars last year.

Print | Email | Discuss this article

| Share |

READERS' COMMENTS

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic. Arabian Business would like to point out that only comments relevant to the story will be published. Any containing personal insults or inappropriate language will not be approved.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Enter the words above *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM