Qatar Airways sinks into red after “toughest year”
The airline reported a loss of 252 million riyals ($69m) loss for the financial year ending March 31, following the blockade imposed by neighbouring countries in June 2017.
Following what it called “the most challenging year in its 20-year history”, Qatar Airways has published its annual report for 2017/18, showing a loss of 252 million riyals ($69m) compared with a QAR2.8bn profit the previous year. Sales posted a 7.4% increase, at QAR42bn.
The airline said the lower sales growth was directly attributable to the blockade imposed by neighbouring countries in June 2017. It said that 14 new destinations had been introduced to compensate for the 18 mature routes affected by the blockade. Launch costs associated with the new routes resulted in an overall net loss of QAR252m.
The Group generated an EBITDAR margin of 23%, at QAR 9.7bn — QAR1.8bn less than the previous year due to longer flying time resulting from the blockade and loss of departing seats from the blockading countries.
Total capacity rose by almost 10% in terms of ASKs as the airline took delivery of 21 aircraft during the year, including the first A350-1000.