Gulf Air said it has cut its losses for the first half of the financial year by “more than 30%,” compared to the same period last year. It also said it increased revenue 10% compared to the first half of 2013, mainly through improved load factors and increasing levels of connecting traffic.

The Muharraq-based carrier, as a state-owned company, does not normally divulge actual figures.

“The first two quarters of 2014 have been critical in the national carrier’s recent, post-restructuring development,” said Shaikh Khalid bin Abdulla Al Khalifa, Bahrain’s deputy prime minister and Gulf Air chairman.

“These positive half-year results show that Gulf Air is continuing on a positive trajectory to become an efficient, commercially sustainable business and an integral part of the Kingdom of Bahrain’s local economy.”

The company’s major restructuring program has seen it concentrate on high-demand, high-yield, regional point-to-point routes primarily aimed at the business community.

The airline’s management team has begun discussions in the past few months with several national aviation regulators to request additional frequencies on existing routes.

The carrier’s acting CEO Maher Salman Al Musallam added: “The initial benefits from the national carrier’s strategic restructuring were evident in our positive 2013 results and these have translated to significant loss reduction and revenue generation during the first half of 2014. Encouraging summer season bookings confirm the positive trend.

“Our investment in strengthening our network with the addition of new international destinations occurred within a rising demand environment that also saw us substantially increase our available capacity thanks to schedule enhancements to key routes,” the airline said.