Financial Records of Qatar Airlines are worsening. Airlines could lose a quarter of a trillion dollars in revenue this year, said the International Air Transport Association on March mid, as travel comes to a standstill with countries locked down to fight the coronavirus outbreak. Most carriers will go bankrupt by the end of May if they can’t find support, said the Sydney-based CAPA Centre for Aviation.
Despite the financial records being rough since the last two years, Qatar Airlines, is one among the few airlines working even in this coronavirus outbreak when most of the flights have cancelled the trips. The airways is now running out of cash will have to discontinue if funds provided are not sufficient to keep them flying.
HOW IS QATAR AIRLINES HELPING AMID THE CORONAVIRUS OUTBREAK?
While most of the airlines have come to a halt, Qatar Airlines is one of few airlines continuing to maintain scheduled commercial passenger services and over the next two weeks expects to operate 1,800 flights.
The measures taken by the Qatar Airlines include amending its flight schedule, working with governments to bring travelers home, and introducing new policies to ensure the health and safety of its staff and passengers. The airline has also transported 500,000 coronavirus test kits to Doha and will donate the same to local health services. The airline is working with governments around the world to maintain a strong schedule of flights, and organizing charter flights where needed.
The Qatar Airlines is operating flights to Europe, Asia and Australia, ferrying passengers home who have been left stranded by the pandemic that has seen many countries close their borders. Qatar Airlines has been operating some flights at 50 per cent occupancy or less and if it fills 45 per cent of seats on flights over the next two weeks it will carry about 250,000 passengers.
“At Qatar Airlines we continue to work hard to take people home to their families, while also ensuring robust health and safety practices to limit the spread of coronavirus,” said Akbar Al Baker, the CEO of Qatar Airlines.
But Baker said that this was coming at a high cost to the airline and that it could only sustain operations for a “very short period”.
PREVIOUS FINANCIAL RECORDS OF QATAR AIRLINES
In last year, 2018-19, Qatar Airways lost almost 632 million USD. This result represented nearly tenfold increase in the company’s losses as in the year 2017-18, it had reported a net loss of about 69 million USD, and they labeled it as the most challenging year in their history.
REASON BEHIND THE FINANCIAL RECORDS OF QATAR AIRLINES IN 2018-19
For the year 2018-19, Qatar Airlines blames these results on the loss of mature routes, higher fuel costs, foreign exchange fluctuations, and the ongoing Gulf blockade with their neighbors as the airline had to fly longer routes to avoid certain airspace, which increased their fuel bill and reduced their aircraft utilization. The airline also had to cut routes to several countries, including Saudi Arabia and the UAE, which used to be their two single biggest foreign markets.
Amidst these losses, Qatar Airlines is helping in the transportation of medical equipment and is ensuring the safety of the people during this coronavirus pandemic.
QATAR AIRLINES RUNNING OUT OF CASH-NEEDS SUPPORT
The CEO of Qatar Airlines, Akbar al-Baker, told Reuters on Sunday, warning that the carrier will soon run out of cash needed to continue flying.
“We have received many requests from governments all over the world, embassies in certain countries, requesting Qatar Airways not to stop flying,” Akbar al-Baker said and now they have to seek help from the government.
To continue the airlines, they will be needing funds or else the airlines might come to an end. Several states have already stepped in to help airlines that have seen demand decimated almost overnight by the coronavirus outbreak, with the U.S. offering 58 billion dollars in aid.
The Arab Air Carriers’ Organization (AACO) and the International Air Transport Association (IATA) have appealed for an urgent financial aid from the governments, warning that inaction will imperil the industry’s future. “The airline industry faces its gravest crisis … For airlines, its apocalypse now,” said the IATA chief, Alexandre de Juniac.
STEPS TAKEN BY THE QATAR AIRWAYS
Qatar Airlines has already announced temporarily 40% reduction of its staff at Hamad International Airport amid the coronavirus pandemic. The CEO of the Qatar Airways said that he had forfeited his salary until the airline returns to full operations. Some employees have even taken unpaid leave voluntarily.
The Qatar Airlines is making efforts to bring in funds so that their flights continue to fly and they continue to help the people and other nations during and after this global pandemic.