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Wednesday, October 28, 2020

Qatar Airways gets QAR 7.3 billion government lifeline in response to losses

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Qatar Airways has received QAR 7.3 billion in government aid to help the national carrier through what has been the most difficult period for the aviation industry. The airline had recorded QAR 7 billion in losses up until March 31, that’s according to statistics released by the company on Sunday.

With the coronavirus pandemic taking a heavy toll on airline companies around the world due to the travel restrictions, the Qatari carrier struggled with losses that exceeded 50 percent of the share capital, according to the company’s annual fiscal report.

Qatar Airways said that this year has been one of its most difficult years due to the financial losses it sustained, which were much more than the QAR 4.5 billion from the previous year.

Read also: Qatar Airways delivers more than 100 tonnes of aid to Sudan

However, Qatar Airways is no stranger to sudden crises.

Due to the sudden 2017 air, land and sea blockade on Qatar by Saud Arabia, Egypt, the UAE and Bahrain, the airline company had to reroute its flights to bypass the illegal restrictions imposed, many industry analysts commended the way in which the airline adapted its business model to absorb the impact of the GCC crisis.

With this current pandemic still very much threatening global economies and both the airline and tourism industries being hit the hardest, the true impact on Qatar Airways remains unclear, but this stimulus from the government will put it in a much stronger position than most of its competitors.

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