The move is in contrast to Middle East competitors such as Etihad, Qatar Airways and Dubai-based Emirates which have been expanding their networks.
“The downsizing will affect the network and affect the fleet,” CEO Samer Majali said. He said staff numbers would not be affected. 
The airline could tap Bahrain’s sovereign wealth fund Mumtalakat, which has a stake in the carrier.  
Bahraini newspaper Gulf Daily News reported on Wednesday that the government is considering options including dissolving or shrinking the airline, or selling it and creating a new  carrier at a cost of 460 million dinars ($1.22 billion).