50% Off! Beat the market in 2025 with InvestingProCLAIM SALE

Qatar Airways swings to annual profit after years of losses

Published 06/16/2022, 06:14 AM
Updated 06/16/2022, 08:52 AM
© Reuters. FILE PHOTO: A Qatar Airways plane descends before landing at the Boryspil International Airport outside Kyiv, Ukraine, February 13, 2022. REUTERS/Valentyn Ogirenko/File Photo

DUBAI (Reuters) -Qatar Airways on Thursday posted its first annual profit since 2017 following years of losses blamed on a regional political dispute and the pandemic.

The airline, which only operates international flights, said it made a profit of 5.6 billion riyal ($1.5 billion) in the year to March 31, compared to a year ago loss of 14.8 billion.

It said revenue climbed 78% to 52.3 billion revenue as passenger traffic more than tripled to 18.5 million, which was still down compared to the year before the pandemic struck.

The cargo business, however, recorded its best ever year with the airline carrying 3 million tonnes of freight.

Air freight rates have sky-rocketed since the start of the pandemic, in part due to constraints in the shipping industry.

Chief Executive Akbar Al Baker said business fundamentals would have been helped to a greater degree if it was not for "unforeseen circumstances" that have significantly impacted fleet capacity and ability to add expand its route network.

Qatar Airways is suing Airbus in a British court for $1 billion in damages after grounding around two dozen of its A350s experiencing the flaws, which it says raise safety concerns - something Airbus and European regulators deny.

The airline had reported consecutive annual losses since its 2017/18 financial year, which it blamed on the political rift that caused it to be banned from some neighbouring countries.

That ban, which forced the airline to operate longer, more expensive routes, was lifted after Saudi Arabia, the United Arab Emirates and others in 2021 ended their dispute with Qatar.

Qatar Airways also cited the pandemic for last year's loss.

© Reuters. FILE PHOTO: A Qatar Airways plane descends before landing at the Boryspil International Airport outside Kyiv, Ukraine, February 13, 2022. REUTERS/Valentyn Ogirenko/File Photo

Gulf rival Emirates, whose financial year also ended March 31, earlier this year reported an annual loss of $1.1 billion.

($1 = 3.6400 Qatar riyals)

(Writting by Alexander CornwellEditing by Mark Potter, Bernadette Baum and David Evans)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.