News
Qatar Airways reports US$69 million full-year net loss
September 21st 2018
Qatar Airways Group this week reported a full-year net loss of QAR252 million (US$69 million), a much better result than industry analysts had forecast, although still a significant reversal from a QAR2.9 billion net profit posted the previous year. Read More »
Qatar Airways said FY2017-18 was “the most challenging year” in the airline’s 20-year history. The airline noted that the US$69 million loss demonstrated its “strength and resilience in the face of adversity”. Qatari aircraft and ships were banned from Saudi Arabian airspace last June, effectively isolating the Qatari peninsula from the rest of the region and forcing Qatar Airways jets to reroute, a costly undertaking for the airline.
Qatar Airways said the airline’s full-year revenues grew 7.22% year-on-year, to just under QAR42 billion, but operating expenses were up 15%, to QAR42.2 billion. Consequently, the carrier posted an operating loss of almost QAR20 million to March 31, compared to an operating profit of QAR2.65 billion announced the previous year.
“This turbulent year has inevitably had an impact on our financial results, which reflect the negative effect the illegal blockade has had on our airline. However, I am pleased to say that thanks to our robust business planning, swift actions in the face of the crisis, our passenger-focused solutions and dedicated staff, the impact has been minimised – and has certainly not been as negative as our neighbouring countries may have hoped for,” said Qatar Airways Group Chief Executive, Akbar Al Baker.
Qatar Airways said it had to terminate 18 “mature routes” due to the “illegal blockade” in FY2017-18, but opened 14 new destinations during the year, comprising flights to Adana, Chiang Mai, St. Petersburg, Pattaya, Penang, Canberra, Thessaloniki, Dublin, Nice, Skopje, Sohar, Prague, Kyiv and Sarajevo.
This year the airline is expanding its network from Doha to Tallinn, Valletta, Langkawi and Da Nang. The latter destination will launch December 19, marking the first intercontinental route from the Vietnamese coastal city.
Qatar Airways has repeatedly said that the Asia-Pacific remained a growth priority. The oneworld member will commence operating its A350-1000, equipped with the airline’s “First-In-Business” Qsuite to Singapore’s Changi Airport from November 1 and to Tokyo Haneda from January 1.
Qsuite features the industry’s first-ever double-bed in business class. Sliding panels allow passengers in adjoining seats to transform their space into private cabins so business colleagues, families and friends can work, socialise and dine together during the flight.
In FY2017-18, Qatar Airways Group also continued with the expansion of its investment portfolio to include an initial 9.94% stake in Cathay Pacific Airways, which has since increased to 9.99%, as well as a 49% shareholding in AQA Holding, the parent company of Meridiana Fly, which was relaunched as Air Italy in February.
Qatar Airways took delivery of 20 aircraft during the financial year, including the world’s maiden A350-1000. The airline now has 220 aircraft in its fleet.
