Qatar Airways reports lower profits despite World Cup

QATAR Airways on Wednesday (Jul 5) reported a 21 per cent drop in annual profits for 2022-2023 despite flying huge numbers of fans to watch the World Cup in November and December.

Net profit registered 4.4 billion riyals (S$1.6 billion) for the fiscal year, a statement said, compared with US$1.54 billion for 2021-2022.

Profits were down despite revenues rising 45 per cent to US$21 billion, and passenger numbers soaring 71 per cent to 31.7 million for the year.

“This year’s strong financial results are attributed to the strong passenger demand recovery and the team’s ability to cater to this demand,” group chief executive Akbar Al Baker said in the statement.

The national flag carrier said it transported 1.4 million fans to Qatar for the World Cup. No explanation was given for the lower profits, and the full earnings report was not immediately available.

Last year’s profits were a record for Qatar Airways after two years of sharp losses when the Covid-19 pandemic decimated the aviation industry.

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Gas-rich Qatar stepped in to support the flag carrier during the shutdown, injecting about US$5 billion in state aid. The airline reported losses of US$4.1 billion in the 2020-2021 financial year. AFP