Qatar Airways suffers $4bn annual loss on pandemic hit
Qatar Airways reported on Monday that its annual revenue loss topped $4bn, and its passenger numbers plunged by 82 percent year over year as the coronavirus pandemic gutted demand for long-haul travel.
'Whilst our competitors grounded their aircraft and closed their routes, we adapted our entire commercial operation to respond to ever-evolving travel restrictions and never stopped flying,' Qatar Airways CEO Akbar Al Baker said in a statement on Monday [File: Brendon Thorne/Bloomberg]
27 Sep 2021
Qatar Airways announced on Monday that it suffered a more than $4bn loss in revenues over the last fiscal year, as lockdowns triggered by the coronavirus pandemic slashed demand for long-haul travel.
The major loss, which the state-owned airline largely attributed to the grounding of its Airbus A380 and A330 wide-body jets, highlights the dramatic toll of the pandemic on the industry.
Even so, the Doha-based airline reported an increase in earnings to $1.6bn before taxes and other costs compared to the previous year — costs that dropped significantly as the airline saved on jet fuel, reduced salaries by 15 percent and cut some 13,400 employees from its workforce. The pandemic has hit international routes the hardest, dealing a heavy blow to super connectors in the Persian Gulf that essentially lack domestic markets.
In the last several months, the flagship carrier has received a boost from an end to a yearslong boycott that locked Qatar Airways out of the airspace of Bahrain, Egypt, Saudi Arabia and the United Arab Emirates. The embargo had forced the airline to take longer routes and consume more jet fuel, raising expenses. For the first time since 2017, the energy-rich state’s airline reopened key routes to hubs like Dubai, Cairo and Riyadh as the political dispute eased in January.
The long-haul carrier praised its resilience in the face of the fast-spreading virus variants still racing around the globe, noting that its operational loss of $288m stood at 7 percent less than the year before.
“Whilst our competitors grounded their aircraft and closed their routes, we adapted our entire commercial operation to respond to ever-evolving travel restrictions and never stopped flying,” Qatar Airways CEO Akbar Al Baker said in a statement.
The airline acknowledged receiving a $3bn lifeline from the Qatari government to keep operating as it struggled with virus restrictions. Revenue for the airline fell to over $8bn from $14bn the year before. The airline incurred charges that ran to $2.3bn over the grounding of its wide-body fleet.
The carrier took just 5.8 million passengers to the skies in the last fiscal year, compared to 32.3 million the year before — a staggering 82 percent drop.
Qatar Airways, which operates some 250 aircraft out of Doha’s recently built Hamad International Airport, follows the model of other Gulf carriers by providing a link between East and West from its location on the Arabian Peninsula. The other two biggest carriers in the region that depend on lucrative long-haul routes, Dubai-based Emirates and Abu Dhabi-based Etihad, also hit turbulence because of the pandemic, posting significant losses in the billions of dollars over the past year.
Emirates, for instance, reported a $5.5bn loss over the last year and received a $3.1bn cash infusion from the Dubai government.
Qatar Airways mentioned some scant signs of recovery, as vaccinations against the coronavirus accelerate across the world. From a low of 33 destinations at the peak of the pandemic, the airline now flies to over 140 and has expanded to new markets from Seattle, Washington in the United States to Brisbane in Australia.
Saudi Arabia plans new national airline in move away from oil
The move is part of a plan to make the kingdom a global logistics hub, and build ports, rail and road networks.
30 Jun 2021
As Indian billionaire plans new airline, Boeing hopes for orders
Rakesh Jhunjhunwala’s plan with ex-CEOs of IndiGo, Jet Airways comes as India is seen as a hot market for planemakers.
2 Aug 2021
United Airlines latest US firm to mandate COVID jabs for staff
United Airlines is the first major US carrier to require all of its domestic staff to be fully vaccinated against COVID.
6 Aug 2021
India conglomerate Tata Group bids for debt-hit national airline
Tata Group, which owned Air India before airline was nationalised, also has investments in AirAsia India and Vistara.
16 Sep 2021
Can Hong Kong’s economy survive China’s political crackdown?
Putin signals additional natural gas may be bound for Europe
Saudi Arabia’s rivalry with Dubai for regional HQs heats up
Kenya to convert oil plants to LNG in climate-friendly grid push
Top US general: China missile test ‘very close’ to Sputnik moment
Why some Korean women are boycotting Squid Game
Khalilzad urges US engage with Taliban to avert Afghan collapse
Hate campaign in India against Urdu for being a ‘Muslim’ language
Follow Al Jazeera English:
© 2021 Al Jazeera Media Network