The company said that a combination of the repercussions of the Covid-19 pandemic, boycotting the Gulf states, and the liquidation of its 49 percent company, Air Italy, which declared bankruptcy in February, nearly doubled losses. This brings the company’s net loss for the year ending at the end of March to seven billion riyals ($ 1.92 billion).
“Qatar Airways is used to facing exceptional challenges, yet the year 2019-2020 was one of the most difficult years in the company’s history,” the company said in a statement.
The giant airline confirmed that Qatar joined the list of governments that have intervened to support their national carriers, through the closure associated with the Coronavirus, which has severely affected global travel and the aviation industry.
The company said in its annual report that it would issue 730 million shares to the government, after receiving an “advance of 7.3 billion riyals,” after its annual losses exceeded 50 percent of its share capital.
“Had it not been for the exceptional circumstances of fiscal year 2020, our results would have been better than the previous year,” said the company’s CEO, Akbar Al Baker. The report also stated that over 12 months, revenues increased by 6.5 percent to 51.1 billion riyals, seat capacity increased by 3.2 percent, and cargo loads increased by 2.8 percent, but the epidemic caused a difficult work environment for airlines. Country.
Since June 2017, the UAE, which was a major market for the Gulf airline, along with Saudi Arabia, Bahrain and Egypt, has imposed an economic and political boycott, which includes closing its airspace, borders and markets to the gas-rich emirate. The Arab Quartet accuses Doha of “financing terrorism” and of supporting Iran, Riyadh’s regional rival, accusations denied by Doha.
Qatar Airways is the second largest airline in the Middle East, after Dubai-based Emirates, and it operates a modern fleet of 250 aircraft, although some remained on the ground during the pandemic.
Last July, the International Court of Justice, the United Nations’ supreme judicial body, ruled in favor Qatar in its existing dispute with the Arab Quartet. Doha said it would request five billion riyals in compensation from Egypt and the three Gulf states, due to the closure of its airspace in front of its national lines.
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