BCN-20 Qatar Airways files $69 million loss amid Gulf crisis

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QATAR-AVIATION-GULF

Qatar Airways files $69 million loss amid Gulf crisis

DOHA, Sept 19, 2018 (BSS/AFP) – Qatar Airways on Tuesday posted a net loss
of over $69 million in the year to March 2018, blaming the “illegal blockade”
against Doha by a Saudi-led bloc of countries.

The tiny Gulf emirate’s national airline said the period had been “the
most challenging year in its 20-year history”.

Saudi Arabia and its allies broke off diplomatic relations with gas-rich
Qatar on June 5, 2017.

They closed all land, sea and air links with the emirate over its alleged
proximity to Saudi Arabia’s arch-enemy Iran and support for radical Islamist
groups.

Qatar has refuted the accusations, saying its Gulf Arab rivals are trying
to seize control of Doha’s foreign policy.

In a statement, Qatar Airways said the blockade had directly impacted its
revenues, slashing seat occupancy on flights leaving Qatar by some 19
percent.

It said its fleet had been forced to ply longer routes, raising fuel
costs, as well as cancelling flights to 18 destinations.

The airline opened 14 new routes over the period but said they came with
launch costs and warned that establishing a presence in new markets would
take time.

Its losses came despite a seven percent rise in revenues.

That came after a bumper period in the financial year prior to the crisis,
posting a 22 percent rise in net profits for 2016-2017.

“This turbulent year has inevitably had an impact on our financial
results, which reflect the negative effect the illegal blockade has had on
our airline,” said the group’s chief executive Akbar Al Baker.

However, he said, “the impact has been minimised — and has certainly not
been as negative as our neighbouring countries may have hoped for.”

BSS/AFP/HR/1005