Qatar Airways reported record losses for the fiscal year ending March 31. They are blaming higher fuel costs and currency volatility for their big financial loss. This is all happening in the middle of an ongoing boycott by Arab countries restricting its flights.
Biggest financial loss yet
They reported a loss of 2.3 billion Qatari riyals ($632 million), compared to 252.5 million ($59 million) Qatari riyals a year earlier, Qatar Airways said in a statement on Wednesday.
Qatar Airways’ CEO, Akbar Al Baker, had this say:
“2018-19 was a year of achievement in the face of adversity for Qatar Airways. Despite facing challenges that are unparalleled in the airline industry, I am very proud that we have grown our fleet, expanded our network and seen overall revenue increase to QAR 48 billion (USD 13.2 billion), a rise of 14%. Passenger numbers are up, capacity as measured by available seat kilometers has risen and our Cargo business is now the largest in the world.
2018-19 was nonetheless a challenging year and while it is disappointing that Group has registered a net loss of QAR 2.3 billion (USD 639 million) – attributable to the loss of mature routes, higher fuel costs and foreign exchange fluctuations – the underlying fundamentals of our business remain extremely robust.”
Why is Qatar losing money?
Qatar Airways is dealing with a two-year boycott by Saudi Arabia, the United Arab Emirates, Bahrain, and Egypt. They severed economic ties with the Gulf state in June 2017. The dispute resulted in airspace closures over the four countries for Qatar Airways, forcing it to slash 20 routes and take longer flight diversions, which increased fuel costs and flight times.
The slowing global economy and geopolitical tensions between Iran and the US also impacted Qatar’s financial losses.
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About the author: Mila Kostic is a native of Belgrade, Serbia.
After majoring in sociology at the Belgrade University she has been working as tutor and coach.
Prior to taking on her role at Mighty Travels, she wrote for a video games, fitness, and health lifestyle website. After starting her work with the Mighty Travels team she discovered her passion for travel and travel writing. Now, she is focused on bringing you the newest travel news.
In her portfolio here at Mighty Travels, you can find articles on Airline news, hottest credit card deals, tips and tricks on earning miles and much more.
You can reach her at [email protected]
This post has been tagged with: Arab Emirates | flights | Qatar Airways | world
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