News
Qatar Airways posts $445 million profit and secures 10% in LATAM
July 15th 2016
On Monday, Qatar Airways announced 1.6 billion Qatari riyals ($445 million) profit for the financial year ended March 31, a 328% increase on the 374 million riyals booked for the previous year. Read More »
Qatar Airways Group cut expenses by 1.5%, in latest fiscal year and increased its cash and bank balance from 5.5 billion to 12 billion, despite significant network expansion and adverse forex movements. The flag carrier added 13 destinations during the year, including Amsterdam, Boston and Los Angeles. It plans to inaugurate 17 more cities into its network this financial year. Among them will be Auckland, Helsinki, Chiang Mai and Krabi.
On Tuesday, Qatar Airways CEO, Akbar Al Baker, said the carrier would take a 10% holding in South America’s LATAM Airlines Group. It is its second investment in a fellow oneworld carrier, after it has built a 15% equity in British Airways parent, IAG.
“As a member of oneworld, we see [the LATAM transaction] as an extension of Qatar Airways’ global network alongside our successful investment in IAG,” Al Baker said. The agreement, if approved by LATAM’s board, would lead to code sharing, loyalty programme reciprocity and operational efficiencies, the Qatar Airways CEO explained, and added he was aware of the “short-term local challenges in some of LATAM’s markets”, but the growth potential for Latin America was considerable.
The Doha-based carrier is on a shopping spree. It is finalizing a deal for up to 49% equity in Italy’s Meridiana and considering the acquisition of up to 49% of Royal Air Maroc (RAM).
