Qatar Airways

Revenue Loss Of Qatar Airways Reaches Over USD 1.9 Billion, Air Carrier Blames Coronavirus Pandemic

Business

The annual loss of long-haul carrier Qatar Airways has reached USD 1.9 billion for the past year. The air carrier has suffered losses for the third consecutive year. But it has blamed the coronavirus pandemic for this year’s loos. Another factor that has contributed to the loss is the ongoing boycott of Qatar by neighboring states which has restricted its flights. The state-owned airline has posted a widening net loss of around 7 billion Qatari riyals in the fiscal year that ended March 31. However, the total group revenue along with other operating income rose to 51.1 billion riyals as the airline carried more passengers.

Earlier in March, the airline received a 7.3 billion riyal advance from the Qatar government when accumulated losses of the group exceeded 50 percent of the company’s share capital. The energy-rich nation bailed out the airline to keep it operating. At an extraordinary meet on September 24, the funds allocated to Qatar Airways were converted into new shares. The airlines said in a statement that the year 2020 has been one of the toughest years in its history. the liquidation of Air Italy during the fiscal year added to the woes of the airline. Qatar Airways had a 49 percent stake in the Sardinia-based airline. The airline has also blamed new accounting rules for the losses.

Akbar al-Baker, CEO of Qatar Airways, said that our results for the fiscal year 2020 would have been better if they would have not faced exceptional circumstances. Qatar Airways carried many more passengers in the last fiscal than the year prior. The airline operates around 250 aircraft out of Hamad International Airport in Doha. But the less demand over fears about the COVDI-19 resulted in lesser demand and the carrier had to ground its double-decker Airbus A380s. The coronavirus pandemic has impacted the global aviation industry the most. It halted aviation for months and it has started to begin again recently.

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