Qatar Airways gets $ 3 billion in state aid after huge loss

DOHA: Qatar Airways said yesterday it had received $ 3 billion in state aid to overcome the coronavirus-related travel slowdown and to offset losses blamed on the cost of downing planes. The airline reported an overall loss of $ 4.1 billion for the year as of March 31, double the figure for the same period the year before. Excluding the cost of grounding its Airbus A380 and A330, Qatar Airways reported an underlying operating loss for the year of $ 228.3 million, up from $ 310 million the year before.

The Gulf carrier reported a slight increase in overall profits and a 4.6% increase in cargo volume carried over the past 12 months. Qatar is among several governments that have stepped in to support their domestic carriers during the coronavirus shutdown, which has hit global travel and the aviation industry. In September 2020, the airline announced that it had received $ 2 billion in state aid after its annual losses exceeded 50% of the share capital. “We have adapted all of our business operations to meet evolving travel restrictions and have never stopped flying,” Qatar Airways chief executive Akbar Al-Baker said in a statement, calling the last 12 month period of “difficult”.

“Although our organization has not received any subsidy in the form of salary support or grants, (the Qatari government) provided an equity injection of 11 billion riyals ($ 3 billion) to support the continuity of the business.” Monday’s results are the first figures for a full year since the United Arab Emirates, a key market for the Gulf carrier, along with Saudi Arabia, Bahrain and Egypt, ended the boycott of Qatar in place since June 2017.

They had accused Doha of links to extremist groups and of being too close to Iran, Riyadh’s regional rival, Qatar, denied having closed its airspace, borders and markets in Doha until ‘an agreement is reached in January. Qatar Airways is the second-largest airline in the Middle East after Dubai-based Emirates, operating a fleet of 253 planes, although some remain grounded during the pandemic. – AFP