TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Qatar Airways says gets $2b state aid after huge loss

The airline confirmed that Qatar had joined a list of governments that have stepped in to support their national carriers through the coronavirus shutdown, which has pummelled global travel and the aviation industry.

  (Agence France-Presse)
Doha, Qatar
Mon, September 28, 2020 Published on Sep. 28, 2020 Published on 2020-09-28T08:24:53+07:00

Change text size

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Qatar Airways' Boeing 787-8 Dreamliner on static display at Singapore Airshow Feb. 12, 2014 in Singapore. Qatar Airways said Sunday it received US$2 billion in state aid to weather the coronavirus crisis, as it posted huge annual losses after enduring one of its "most difficult years". Qatar Airways' Boeing 787-8 Dreamliner on static display at Singapore Airshow Feb. 12, 2014 in Singapore. Qatar Airways said Sunday it received US$2 billion in state aid to weather the coronavirus crisis, as it posted huge annual losses after enduring one of its "most difficult years". (shutterstock.com/Jordan Tan/File)

Q

atar Airways said Sunday it received US$2 billion in state aid to weather the coronavirus crisis, as it posted huge annual losses after enduring one of its "most difficult years".

The firm said that the combination of the coronavirus pandemic, a boycott by Gulf neighbours and the liquidation of 49 percent-owned Air Italy – which announced its bankruptcy in February – had resulted in a near doubling of losses.

This brought the carrier's net loss for the year to end-March to 7.0 billion riyals ($1.92 billion).

"Qatar Airways is familiar with facing exceptional challenges; however, 2019-20 has been one of the most difficult years in the airline's history," the carrier said in a statement.

The airline confirmed that Qatar had joined a list of governments that have stepped in to support their national carriers through the coronavirus shutdown, which has pummelled global travel and the aviation industry.

The carrier will issue 730 million shares to the government after receiving "an advance of 7.3 billion riyals" ($2 billion) after annual losses exceeded 50 percent of share capital, it said in its annual report.

"If not for the exceptional circumstances of fiscal year 2020, our results would have been better than the year before," said the airline's chief executive, Akbar al-Baker.

The report also said that over the 12 months, revenue increased 6.5 percent to 51.1 billion riyals, seat capacity increased by 3.2 percent, and freight handled rose by 2.8 percent.

The pandemic compounded an already difficult environment for Qatar Airways. The United Arab Emirates, which was a key market for the Gulf carrier, along with Saudi Arabia, Bahrain and Egypt, have enforced a boycott of Qatar since June 2017.

They accuse Doha of links to extremist groups and being too close to Iran, Riyadh's regional arch-rival – charges Qatar denies – and have closed their airspace, borders and markets to Doha.

Qatar Airways is the second largest airline in the Middle East after Dubai-based Emirates, operating a modern fleet of 250 aircraft – although some remain grounded during the pandemic. 

Qatar in July won a ruling at the International Court of Justice in its fight against airspace restrictions by Saudi Arabia, the UAE, Bahrain and Egypt.

It said it will seek $5 billion in compensation from the other Arab states for closing their airspace to the flag carrier.

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.

Share options

Quickly share this news with your network—keep everyone informed with just a single click!

Change text size options

Customize your reading experience by adjusting the text size to small, medium, or large—find what’s most comfortable for you.

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!

Continue in the app

Get the best experience—faster access, exclusive features, and a seamless way to stay updated.