Qatar Airways reports USD639 million loss for 2018-2019.
- A Monitor Report01 Oct, 2019 | 428 Views|-+
Doha : Qatar Airways witnessed a loss of USD639 million for the year 2018-2019, according to the carrier's annual report published on September18.
Last year, the airline lost about USD69 million labelling it as the most challenging year in their history. However, this year's results represent a nearly tenfold increase in the company's losses.
Akbar Al Baker, CEO of Qatar Airways blames these results on "the loss of mature routes, higher fuel costs and foreign exchange fluctuations".
Also, due to the Gulf blockade, the airline is having to fly longer routes to avoid certain airspace, which increases their fuel bill and reduces their aircraft utilisation.
The airline has had to cut routes to several countries, including Saudi Arabia and the UAE, which used to be their two single biggest foreign markets.
"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," said Akbar Al Baker.
"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 per cent," added the CEO.
This year, the carrier's passenger revenue increased by 14.3 per cent, while capacity (measured by available seat kilometers) grew by 13.5 per cent. Cargo revenue increased by 16.8 per cent, while capacity (measured by available ton kilometers) grew by 11.8 per cent.
These numbers indicate that the carrier's increased revenue is significantly outpacing increased capacity.
The airline also expanded its network and fleet, adding 11 destinations to its route network and 25 aircraft to its fleet.
Signs codeshare deal with China Southern
Qatar Airways has signed a codeshare agreement with China Southern Airlines.
The codeshare agreement is the first step in the strengthening of cooperation between both airlines since Qatar Airways acquired 5 per cent of China Southern in December 2018.
The codeshare agreement will enable China Southern Airlines' passengers to book travel on Qatar Airways' flights between Guangzhou and Doha and Beijing and Doha allowing one stop connections to more than 80 destinations in the Middle East, Europe and Africa.
Subject to regulatory approvals, the airlines are hoping to commence codesharing in January 2020.
Qatar Airways first began flying to China in 2003 with a service from Doha to Shanghai. Today, Qatar Airways operates 45 weekly flights to seven Greater China gateways: Shanghai, Beijing, Guangzhou, Hangzhou, Chongqing, Chengdu and Hong Kong.