Qatar Airways earned about $2 billion in state aid to cope with the COVID-19 pandemic, as it recorded significant annual losses after spending one of its “toughest years. “
Qatar’s state airline said the combination of the pandemic, a boycott through Gulf neighbors and the liquidation of 49%-owned Air Italy, which announced bankruptcy in February, had doubled losses.
This led to the airline’s loss for the year until the end of March to 7 billion riyars ($1. 92 billion).
“Qatar Airways knows how to meet exceptional challenges; however, 2019-2020 was one of the most difficult years in the history of the airline,” the airline said in a statement.
The airline showed that Qatar had joined a list of governments that intervened to help its domestic airlines close the coronavirus, which affected global travel and the aviation industry.
The airline will factor 730 million percentages to the government after receiving “a 7. 3 billion rial advance” ($2 billion) after annual losses exceed 50% of the percentage of capital, he said in his annual report.
“Without the cases of fiscal year 2020, our effects would have been greater than last year,” said the airline’s executive leader, Akbar al-Baker.
The report also indicates that during the 12 months, revenue increased by 6. 5% to 51. 1 billion riyals ($ 14 billion), seats higher by 3. 2% and cargo processed more by 2. 8%.
The coronavirus pandemic has disrupted global aviation for months and is just beginning to recover. The true effect of the pandemic on Qatar Airways is unclear, as global blockades continued after the end of its fiscal year in March.
The pandemic has exacerbated an already complicated environment for Qatar Airways.
Since mid-2017, the airline has been prohibited from accessing airspace in Saudi Arabia, the United Arab Emirates (UAE), Bahrain and Egypt after countries imposed a land, sea and air blockade, forcing it to make longer routes.
Qatar Airways is the largest airline of the moment in the Middle East after the founding of the Emirates in Dubai, which operates a fashionable fleet of 250 aircraft, although some are still on the ground of the pandemic.
In July, Qatar received a ruling from the International Court of Justice in its fight against airspace restrictions across Saudi Arabia, the United Arab Emirates, Bahrain and Egypt.
He said he would seek a $5 billion refund from Arab states for the closure of his airspace to the national airline.
© 2020 Al Jazeera Media Network