Yesterday, Qatar Airways announced losses amounting to seven billion riyals ($ 1.92 billion) for the fiscal year ending on March 31, amid the Corona crisis that has plagued the aviation sector around the world.
According to “Reuters”, Qatar Airways said that 2020 was one of its most difficult years ever, as its losses increased after the previous year’s losses amounted to 4.5 billion riyals. The real impact of the pandemic on Qatar Airways is still unclear, in light of the continuation of measures to contain the virus after the end of the company’s fiscal year in March.
Qatar Airways, owned by the government, revealed that it had received 7.3 billion riyals ($ 1.95 billion) in support from the state after losses over the fiscal year ending on March 31.
The Qatari government provided support to Qatar Airways after March when its annual losses exceeded 50 percent of the capital, according to the group’s annual financial statement, and the cash support was later transferred to new shares.
The company said in its annual report that it would issue 730 million shares to the government after receiving the “advance” support.
The airline, which has cut jobs and postponed receiving new planes due to the pandemic, announced in March that it was seeking state support after the Corona virus crisis affected the global travel sector, but it had not previously revealed the size of the funding.
Qatar Airways said the 2019-2020 fiscal year was one of its toughest in three decades. The Qatar Airways Group includes the airline, management of Qatar International Airport, and other aviation assets.
Air Italy, in which Qatar Airways was a minority stakeholder, went into liquidation in February.
The company said that a combination of the repercussions of the Covid-19 pandemic, boycotting the Gulf states and the liquidation of the 49 percent owned “Air Italy” company, which declared bankruptcy in February, nearly doubled losses.
Since June 2017, the UAE, which was a major market for the Gulf Airlines, along with Saudi Arabia, Bahrain and Egypt, imposed an economic and political boycott that includes closing its airspace, borders and markets to Qatar, after Doha’s involvement in terrorist financing and support for Iran.
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