Qatar Airways Reports 2020/21 Annual Net Loss of $4.1 Billion
Qatar Airways has announced a FY 2020/21 net loss of QAR 14.9 billion (US $4.1 billion), which includes a one-time impairment charge of QAR 8.4 billion (US $2.3 billion) related to the grounding of the airline’s Airbus A380 and A330 fleets.
On Monday (September 27, 2021) Qatar Airways announced their fiscal year 2020/21 financial results. The Group reported an annual net loss of QAR 14.9 billion (US $4.1 billion) on a year-over year EBITDA improvement from QAR 5 billion (US 1.4 billion) to QAR 6 billion (US $1.6 billion). The annual net loss includes a one-time impairment charge of QAR 8.4 billion (US $2.3 billion), related to the grounding of the airline’s Airbus A380 and A330 fleets. The Group’s 2020/21 operating loss totaled QAR 1.1 billion (US $288.3 million) a 7% improvement versus FY 2019/2020.
In Monday’s announcement, Qatar Airways Group’s Chief Executive, His Excellency Mr. Akbar Al Baker, said,
“Whilst our competitors grounded their aircraft and closed their routes, we adapted our entire commercial operation to respond to ever-evolving travel restrictions and never stopped flying, operating a network our passengers and customers could rely on. With the support of our varied fleet of modern, fuel-efficient aircraft, we were able to ensure that more of our scheduled flights operated than any other carrier and fulfilled our mission of taking stranded passengers home, whilst maintaining global supply chains to transport medical aid and supplies essential to the fight against COVID-19.
“We also significantly expanded our charter business as a direct response to increased demand in this area, providing vital and reliable services to support our customers during uncertain times, an effort that was publicly appreciated and acknowledged by many governments and organisations around the world. This commercial flexibility further consolidated our leadership position at the forefront of the recovery of global air travel.
“I am extremely proud of our people across the Qatar Airways Group who have remained agile and adapted quickly to this new reality, displaying the tenacity, versatility, and commitment to excellence so often associated with everything we do. I also wish to take this moment to express our gratitude to our shareholder, the Government of the State of Qatar, for its firm support of the Qatar Airways Group during this challenging period. While our organisation did not receive any subsidies in the form of salary support or grants, our shareholders did provide an equity injection of QAR11 billion (U.S.$3 billion) to support the business’s continuity.
“As ever, the strength of our financials has enabled us to continue to concentrate on the long-term, investing in a sustainable, fuel-efficient fleet and innovative digital technologies, establishing and strengthening strategic partnerships with leading airlines around the globe, and also launching new routes. This strategic focus will ensure we emerge stronger from this difficult period and continue to maintain our position as the world’s leading international airline.”
Qatar Airways Cargo saw a 4.6 percent increase in revenue freight tons carried compared to FY 2019/20, with 2,727,986 tons of chargeable weight handled during 2020/21. Despite one of the most difficult years in the airline’s history, the carrier has rebuilt their network from a low of 33 destinations to over 140 destinations today. Qatar Airways continues to identify new markets and has launched nine new destinations including, Abidjan (Côte d’Ivoire), Abuja (Nigeria), Accra (Ghana), Brisbane (Australia), Harare (Zimbabwe), Luanda (Angola), Lusaka (Zambia), and San Francisco and Seattle (US).
During FY 2020/21 Qatar Airways also forged new strategic partnerships with American Airlines, Air Canada, Alaska Airlines and China Southern Airlines. The carrier also expanded existing commercial partnerships with JetBlue, Iberia, LATAM, Cathay Pacific and Oman Air.
Source: Qatar Airways