Qatar Airways narrows loss 50pc with revenue surge and cost cutting
Qatar Airways surge in revenue from higher load factors, plus stringent cost cutting has narrowed its loss by 50 per cent, reports Bloomberg
Qatar Airways surge in revenue from higher load factors, plus stringent cost cutting has narrowed its loss by 50 per cent, reports Bloomberg.
'Our losses are half of what we budgeted,' said CEO Akbar Al Baker. Cost cutting and 'being very aggressive in the way we sell' has driven improvement.
'The only impact of the blockade after almost three years today is operational costs due to the average extra flying time of 25 minutes per flight,' he said, adding that breakeven could come in the next financial year and profitability in the one ending in 2022.@FAXTEXT The blockade occurred when Saudi Arabia led Arab neighbours banned Qatari airplanes and ships from utilising their airspace and sea routes because they had supported the Muslim Brotherhood, traded with Iran and had not made Al Jazeera toe the Arab policy line.
Qatar Airways has also been facing higher fuel prices and a weaker regional economy as well as being affected by a tough operating environment cause by the Saudi-led airspace closures.
In its search for growth, Mr Al Baker said talks continue about investing in India's IndiGo, with which Qatar Airways code shares. A stake in IndiGo would help Qatar Airways to compete with its Middle Eastern rivals by expanding in a market where air travel is low.
The Qatar Airways expects to take delivery of the company's first Boeing 777X mid-2020, a delay exacerbated by the plane maker's focus on the 737 Max grounding and production halt. Qatar Airways will also continue to fly to Iran, he said.