In the history of the airline industry, the last couple of years have been the toughest. Many airlines are once again returning to profitability as the world slowly returns to normal. The results of the airline are completely different.
The airline reported a record profit of 1.54 billion for the period from April 1, 2021, to March 31, 2022. This is the largest profit of any airline in the world so far this year, and it is also a record profit for the airline.
The airline's revenue increased to a new high of $14.4 billion. It was 2% higher than pre-coronaviruses, but it was up 78%. In the previous financial year, a big revenue source cargo was in the previous financial year. That has continued to be a strong point for the airline despite the fact that cargo capacity increased by 25%.
The airline had an earnings before interest, taxes, depreciation and amortization (Ebitda) margin of 34% for the year. This was due to fit for purpose operations across all business areas.
In the previous financial year, there was a net loss of $4.1 billion, but only $288.3 million of that was an operating loss.
Akbar Al Baker described the company's performance.
“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.”
There are a couple of things I want to discuss here. It has been great to see the direction of the airline. During the Pandemic, the airline operated the largest continuous route network in the world and offered one-stop service between so many places.
I believe that the airline is well positioned going forward and that it is emerging stronger from the Pandemic than anyone else. That is the case in comparison to Gulf competitors. It is no small feat for the management team of the airline to succeed.
People are skeptical when it comes to Gulf carrier results. The major US carriers spent a long time trying to undermine the Gulf carriers.
Is it safe to trust these results? Perspective is important. The ability of the government to provide financing at a scale and at rates that other airlines may not have access to is something that is different when the government owns the airline.
In the past couple of years, US airlines have been aided by some government subsidies, and in some cases payroll support was the difference between making money and losing money.
I can't figure out how the A350 fleet is being accounted for when all of this is taken into account. A large portion of the A350 fleet has been grounded due to a dispute between the airlines. I think the biggest challenge for long-term growth is the carrier's dispute with Toulouse, given how reliant it is on Boeing.
The largest profit in the carrier's history and the biggest profit of any airline that has reported it so far for the past year have been reported by the carrier. As the airline is emerging from the Pandemic stronger than before, it's a huge honor for them.
What do you think about the results of the airline?
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