Qatar Airways sees profit rise to $1.54bn, highest in 25 years

BY Sade Williams/Business a.m.

In the year it is celebrating its 25th anniversary, Qatar Airways Group has reported its biggest profit ever as its 2021/22 annual report shows a 200 percent rise above its annual historical profit to $1.54 billion.

The airline attributes the historical performance at a most difficult period ever in the global airline industry, to its agility and successful strategy which continued to focus on customer needs and evolving market opportunities, as well as efficiency and the commitment of its worldwide employees.

This profit is not only a record for the airline, but also a record among all other airlines that have published financial results for this financial year worldwide.

The airline group saw overall revenue increase to QAR 52.3 billion ($14.4 billion), up 78 percent compared to last year and two percent higher than the full financial year pre-COVID (2019/20).

The report shows that passenger revenue increased by 210 percent over the last year, due to the growth of the Qatar Airways network, increase in market share and higher unit revenue, for the second financial year in a row.

The airline carried 18.5 million passengers, an increase of 218 percent over last year. Qatar Airways Cargo remained the leading player in the world as its revenue experienced an impressive growth of 25 percent over last year with the growth in cargo capacity (available tonne kilometres) of 25 percent annually.

The group generated a strong EBITDA margin of 34 percent at QAR 17.7 billion ($4.9 billion). EBITDA was higher than the previous year by QAR 11.8 billion ($3.2 billion) due to streamlined, agile and fit-for-purpose operations across all business areas.

According to the airline, these record earnings are the result of decisions made during the pandemic to expand the Qatar Airways’ passenger and cargo networks, with a more accurate forecast of the global market recovery, building further customer and trade loyalty and product excellence combined with strong cost control.

The report stated that despite the challenges of COVID-19, the national carrier of the State of Qatar grew to more than 140 destinations in 2021/22, opening new routes including, Abidjan, Côte d’Ivoire; Lusaka, Zambia; Harare, Zimbabwe; Almaty, Kazakhstan and Kano and Port Harcourt, Nigeria in addition to resuming flights to key markets across Europe, Africa, the Middle East and Asia.

The company has operated continuously the largest network among all middle eastern airlines, as measured by number or destinations, as well as weekly flights. Saad Bin Sharida Al-Kaabi, minister of state for energy and chairman, Qatar Airways Group said: “Qatar Airways Group has demonstrated a robust role in the aviation industry, and these financial results are a clear indication of the group’s strong performance.

“Against challenges during the previous period, I am delighted by the achievements that have been accomplished this year and by the way the group has swiftly responded to these challenges.

“This year, Qatar Airways Group celebrates a quarter of a century of history since its relaunch, whilst maintaining strong performance and growing profitability. Our commitment to providing the greatest choices to our passengers, maintaining the highest levels of safety in the industry and earning trust have made us proudly become the airline of choice for millions of travellers around the world. We have pursued every business opportunity and left no stone unturned as we aimed to meet our targets,” he said.

Akbar Al Baker, chief executive officer said: “I am extremely proud of the decisions we have made to embrace efficiency and achieve strong cost control across several operational departments whilst engaging in environmental and sustainable initiatives. This has positioned us at the forefront in the field of sustainability, including environmental protection and social commitment. Our strategic investments in a varied fleet of modern, fuel-efficient aircraft has helped us overcome the significant challenges related to capacity constraints while balancing commercial needs as swiftly as possible.”

Throughout this year, the Qatar Airways Group maintained a highly-successful and wealthy portfolio of regional and global partnerships to champion the brand across the world including, global sporting clubs – AlSadd SC, Boca Juniors, Brooklyn Nets, FC Bayern München, and Paris Saint-Germain, the partnership with the South American Football Confederation (CONMEBOL) and FIFA. The group also continued to showcase its unwavering commitment to giving back and supporting communities and charitable initiatives throughout 2021/22.

The airline said as the world continues its recovery from the devastating impact of COVID-19, it remains committed to keeping passengers and cargo moving across the globe, maintaining and building on the exceptional standards of its first 25 years of operation, which has brought it the award of the Best Airline in the World.