Qatar Airways posts higher operating profit despite revenue dip

Dhaka: Qatar Airways reported its financial results for the fiscal year ending March 31, recording a 3.7% rise in operating profit despite a 2.6% revenue decline, as sharply lower fuel costs helped the carrier weather disruptions from the ongoing military conflict in the Middle East.

The Doha-based airline's operating revenue grew from QAR 14.7 billion to QAR 15.2 billion (USD 4 billion to USD 4.2 billion).

Fuel, the carrier's largest expense, saw a significant decline of 15.5%, falling from QAR 24.4 billion to QAR 20.6 billion (USD 6.7 billion to USD 5.7 billion). The cost reduction was a primary driver of improved operational profitability.

Net profit, however, slipped 9.9%, from QAR 7.9 billion (USD 2.2 billion) to QAR 7.1 billion (USD 1.9 billion). Qatar Airways attributed this to higher tax payments following Qatar's adoption of the OECD Pillar Two global minimum tax, which requires large multinational corporations to pay a minimum effective tax rate of 15%.

The fiscal year was marked by significant geopolitical turbulence. The military conflict between the US/Israel and Iran disrupted Middle East aviation operations and weighed on passenger numbers.

Qatar Airways carried 41.8 million passengers, a 3% decrease year over year, while its cargo division transported over 1.43 million tonnes of chargeable weight during the period.

The airline closed the fiscal year with a combined cash and short-term deposit position of QAR 32.7 billion (USD 9 billion), down 22.9%, reflecting heavy capital expenditures on fleet expansion.

On the strategic front, Qatar Airways signed commitments with Boeing and GE Aerospace during the fiscal year for up to 210 aircraft and 400 engines. The airline also commenced a fleet-wide Starlink high-speed broadband rollout.