Qatar Airways today released their 2019/20 Annual Report where they disclosed that they made a net loss of QAR 7 billion (USD 1.92 billion) during the period. The airline attributes the loss to certain key challenges which include:
- The ongoing airspace blockade
- Liquidation of Air Italy
- Changes to accounting policy and reporting standards
- COVID-19 Pandemic
The airline did add that if the above challenges were excluded that the Group’s results would’ve been better than the performance reported in the previous Financial Year.
Qatar Airways saw improvements in overall group revenue which was up 6.4% YoY to QAR 51.1 billion, passenger revenues increased by 8.9% as passengers transported increased by 9.8% YoY to 32.4 million in the 2019/20 Financial Year.
Qatar Airways Fleet (As at 31 March 2020)
The airline spent QAR 16.8 billion investing in the fleet and other assets during the year and have stated that significant progress has been made in their 3-year transformation plan which began prior to the pandemic.
CEO of Qatar Airways Group, His Excellency Mr Akbar Al Baker stated, “I have every confidence that the Qatar Airways Group will emerge stronger from this difficult period and continue to innovate and set the standards that our competitors can only hope to emulate. We will continue to be the airline millions of passengers can trust and rely on in good times and bad, and proudly fly the flag of the State of Qatar across the globe.”
The airliner ends the Financial Year with QAR 7.3 billion in cash balance which should help them through this tough period. However, it should be noted that the 2019/20 Financial Year ended in March 2020 and with COVID-19s impacts seen toward the end of March with the following months even worse for several airlines, the current 2020/21 Financial Year could potentially see the airline making an even greater loss.
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