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qf789
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Qatar Airways posts $69 million full year loss

Tue Sep 18, 2018 7:05 am

Qatar has announced its full year results today, posting a $69 million loss. The main contributing factor is the blockade forcing them to fly longer distances on some routes

Revenue grew 7.22%
ASK grew 9.96%
Illegal blockade impacted departing seats by 19%
Cargo capacity grew by 34%

https://www.qatarairways.com/en/press-r ... s-releases

https://www.reuters.com/article/us-qata ... SKCN1LY0N1
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Qatara340
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Qatar Airways reveals loss for 2017/2018

Tue Sep 18, 2018 7:06 am

Qatar Airways has revealed a loss of $69m for 2017/2018 in the first year after the blockade.

The state-owned airline said it made a loss of 252 million riyals ($69 million) compared with a profit of 2.79 billion riyals a year earlier. Operating expenses increased to 42.2 billion riyals from 36.7 billion riyals last year.

Revenue, however, increased 7.4 percent to 42 billion riyals from 39 billion last year.


My thoughts: I expected the loss to be greater to be honest! Well done to QR for managing such a huge crisis efficiently. Let's hope that they can recover for next year.

Source: https://www.bloomberg.com/news/articles ... s-up-costs
لا اله الا الله محمد رسول الله
 
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enilria
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Re: Qatar Airways reveals loss for 2017/2018

Tue Sep 18, 2018 10:03 am

Qatara340 wrote:
Qatar Airways has revealed a loss of $69m for 2017/2018 in the first year after the blockade.

The state-owned airline said it made a loss of 252 million riyals ($69 million) compared with a profit of 2.79 billion riyals a year earlier. Operating expenses increased to 42.2 billion riyals from 36.7 billion riyals last year.

Revenue, however, increased 7.4 percent to 42 billion riyals from 39 billion last year.


My thoughts: I expected the loss to be greater to be honest! Well done to QR for managing such a huge crisis efficiently. Let's hope that they can recover for next year.

Source: https://www.bloomberg.com/news/articles ... s-up-costs

I agree it is surprisingly small. To be honest I think given the air blockade it would have been acceptable to post a much larger loss. The USA bankrolled its carriers at 9/11 and the air blockade is much more targeted at airlines. I guess I’m suggesting they had a lot of oppprtunities to manipulate how much loss was shown, but regardless any country would help their airlines in this situations.
 
chonetsao
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Re: Qatar Airways reveals loss for 2017/2018

Tue Sep 18, 2018 10:07 am

I guess their investment in IAG and LATAM is paying off. Next year the investment in CX will start to show dividend too.
 
Airbusvoyager
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Re: Qatar Airways reveals loss for 2017/2018

Tue Sep 18, 2018 10:08 am

The flights times have increased too especially getting into and out of DOH :roll:

Personally I feel QR has a better inflight product than EK, especially their cabin service.
 
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neomax
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Re: Qatar Airways reveals loss for 2017/2018

Tue Sep 18, 2018 11:36 am

Impressive, looks like their growth strategy is paying off!
 
5NFGS
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Re: Qatar Airways reveals loss for 2017/2018

Tue Sep 18, 2018 1:03 pm

QR most definitely is built to be resilient!
Well done and congrats to Akbar and the QR squad.
19% decline in seat capacity but 7% revenue GROWTH s no joke, in this politically tense and fuel expensive situation.
A 319/320/321,A 330-200/300, A 340-300/500/600, B 737-300/400/500,B 737-700/800,B 747-300/400,B 767-200 ER/300 ER, B 777-200/200 ER,CRJ 200/900/1000,DHC-8-300/Q 300, DC-10, ERJ-195,MD-11
 
asuflyer
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Re: Qatar Airways reveals loss for 2017/2018

Tue Sep 18, 2018 2:10 pm

Considering FZ's loss was $86m in the 1H of 2018, it is really not bad at all.
 
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mercure1
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Re: Qatar Airways reveals loss for 2017/2018

Tue Sep 18, 2018 4:19 pm

Besides financial investment activity such as IAG for example, QR has other revenue streams - duty-free concession, alcohol sale license, ground handling, MRO, etc. Its a smartly diversified group, not solely reliant only single revenue model.

Indeed well done by QR.
mercure f-wtcc
 
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lightsaber
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Re: Qatar Airways reveals loss for 2017/2018

Tue Sep 18, 2018 4:36 pm

asuflyer wrote:
Considering FZ's loss was $86m in the 1H of 2018, it is really not bad at all.

I expected another zero in losses.


I'm going to have to think on this...

Lightsaber
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LupineChemist
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Re: Qatar Airways reveals loss for 2017/2018

Tue Sep 18, 2018 4:58 pm

Do we know how IG is doing as part of this. I would assume they are losing money as part of the expansion for now as well.
 
MaverickM11
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Re: Qatar Airways reveals loss for 2017/2018

Tue Sep 18, 2018 5:08 pm

lightsaber wrote:
asuflyer wrote:
Considering FZ's loss was $86m in the 1H of 2018, it is really not bad at all.

I expected another zero in losses.


I'm going to have to think on this...

Lightsaber

Yeah it's hard to square FZ's -11% margin w/ QR's -0.1% with a tiny home market and a blockade...
E pur si muove -Galileo
 
superjeff
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Re: Qatar Airways reveals loss for 2017/2018

Tue Sep 18, 2018 5:33 pm

enilria wrote:
Qatara340 wrote:
Qatar Airways has revealed a loss of $69m for 2017/2018 in the first year after the blockade.

The state-owned airline said it made a loss of 252 million riyals ($69 million) compared with a profit of 2.79 billion riyals a year earlier. Operating expenses increased to 42.2 billion riyals from 36.7 billion riyals last year.

Revenue, however, increased 7.4 percent to 42 billion riyals from 39 billion last year.


My thoughts: I expected the loss to be greater to be honest! Well done to QR for managing such a huge crisis efficiently. Let's hope that they can recover for next year.

Source: https://www.bloomberg.com/news/articles ... s-up-costs

I agree it is surprisingly small. To be honest I think given the air blockade it would have been acceptable to post a much larger loss. The USA bankrolled its carriers at 9/11 and the air blockade is much more targeted at airlines. I guess I’m suggesting they had a lot of oppprtunities to manipulate how much loss was shown, but regardless any country would help their airlines in this situations.



I'm not sure the U.S. bankrolled its airlines after 9/11. A bunch went bankrupt in the years after, including all of the U.S. majors except American. Frontier, TWA, and within a couple of years, Delta ,Northwest. Within a couple of years US Airways, which was only rescued by a reverse merger/takeover by America West . The U.S. government didn't bankroll anybody (and in a Chapter 11 Bankrtuptcy in the U.S., the shareholders are pretty much wiped out
 
THS214
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Re: Qatar Airways reveals loss for 2017/2018

Tue Sep 18, 2018 5:34 pm

mercure1 wrote:
Besides financial investment activity such as IAG for example, QR has other revenue streams - duty-free concession, alcohol sale license, ground handling, MRO, etc. Its a smartly diversified group, not solely reliant only single revenue model.

Indeed well done by QR.


Few years ago Dubai made significant profit (number wise) of their tax free. Yet yearly profit was less than 1% of what the new airport was to cost. Without numbers for ancillary income it's impossible to know what it means in a big picture.
 
Casablanca
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Re: Qatar Airways reveals loss for 2017/2018

Tue Sep 18, 2018 5:41 pm

The major airlines received billions in aid after 9-11. I believe total government bailouts 15 billion.
I would say that Qatar is also equally allowed a little government help!
This is much more zeroed in to the airline and must say USA didn't help in first few weeks
 
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janders
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Re: Qatar Airways reveals loss for 2017/2018

Tue Sep 18, 2018 6:45 pm

Good job QR, especially with the tough circumstances the country found itself last year.

Guess the timing of the growth at QR Cargo fleet was very fortuitous. That cargo flying saved the day not only for the airline, but the country also!
"We make war that we may live in peace." -- Aristotle
 
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enilria
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Re: Qatar Airways reveals loss for 2017/2018

Tue Sep 25, 2018 5:41 pm

superjeff wrote:
I'm not sure the U.S. bankrolled its airlines after 9/11. A bunch went bankrupt in the years after, including all of the U.S. majors except American. Frontier, TWA, and within a couple of years, Delta ,Northwest. Within a couple of years US Airways, which was only rescued by a reverse merger/takeover by America West . The U.S. government didn't bankroll anybody (and in a Chapter 11 Bankrtuptcy in the U.S., the shareholders are pretty much wiped out

Casablanca wrote:
The major airlines received billions in aid after 9-11. I believe total government bailouts 15 billion.

Casablanca is correct.

The measure gives the nation's airlines $5 billion in immediate cash assistance and $10 billion in loan guarantees in an effort to keep several major carriers from collapsing. Sen. Peter Fitzgerald, R-Ill., was the only senator to vote against the bill.
In the wake of last week's terrorist attacks involving hijacked airplanes, Congress Friday passed a measure for a $15 billion financial aid package to help the crippled airline industry and set up a government compensation fund for victims to help deter lawsuits.
While two-thirds of the money doled out by the Department of Transportation did go to the major carriers, hundreds of millions more went to places you wouldn't expect.

"It was a massive boondoggle," says Republican Illinois Senator Peter Fitzgerald. "Congress just got out the ladle and shoveled it all over the place."

For example: $20 million was shoveled to three bankrupt airlines like Vanguard, Midway, and Reliant. Nearly $165 million went to package-delivery companies. Another $5 million went to helicopter companies that, among other things, ferry workers to oilrigs and run tours to the Grand Canyon. Even three companies that arrange travel from the U.S. to Cuba cashed in.

http://edition.cnn.com/2001/US/09/21/re ... line.deal/
https://www.cbsnews.com/news/9-11-airli ... -got-what/
 
MaverickM11
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Re: Qatar Airways reveals loss for 2017/2018

Tue Sep 25, 2018 5:47 pm

Not sure what US carriers were doing 17 years ago has to do with anything. Air Senegal has been recapitalized a zillion times. Does any of that make QR's $69MM loss any more believable? Is it normal to not have any mention of capacity in your annual report? :scratchchin:
E pur si muove -Galileo
 
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enilria
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Re: Qatar Airways reveals loss for 2017/2018

Tue Sep 25, 2018 5:51 pm

MaverickM11 wrote:
Not sure what US carriers were doing 17 years ago has to do with anything. Air Senegal has been recapitalized a zillion times. Does any of that make QR's $69MM loss any more believable? Is it normal to not have any mention of capacity in your annual report? :scratchchin:

The point was that even if they were overtly subsidized during the current air blockade it would be significantly more justifiable than the bailout of the U.S. carriers after 9/11 because that was a single event and this is an ongoing "war" that is directly impacting one of the nation's most valuable business assets by forcing them to fly uneconomic air routings.
 
MaverickM11
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Re: Qatar Airways reveals loss for 2017/2018

Wed Sep 26, 2018 8:23 am

enilria wrote:
MaverickM11 wrote:
Not sure what US carriers were doing 17 years ago has to do with anything. Air Senegal has been recapitalized a zillion times. Does any of that make QR's $69MM loss any more believable? Is it normal to not have any mention of capacity in your annual report? :scratchchin:

The point was that even if they were overtly subsidized during the current air blockade it would be significantly more justifiable than the bailout of the U.S. carriers after 9/11 because that was a single event and this is an ongoing "war" that is directly impacting one of the nation's most valuable business assets by forcing them to fly uneconomic air routings.

Weren't they losing money prior to the blockade?
E pur si muove -Galileo
 
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eta unknown
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Re: Qatar Airways reveals loss for 2017/2018

Wed Sep 26, 2018 11:00 am

Here's my take... in Australia Ernst & Young and Deloitte were just caught rewriting reports because their client (Allianz) didn't like their findings. I don't for a minute believe QR's losses are that low and their promise to open their books is similarly hollow. https://www.smh.com.au/business/banking ... 504fi.html
 
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enilria
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Re: Qatar Airways reveals loss for 2017/2018

Wed Sep 26, 2018 1:41 pm

MaverickM11 wrote:
enilria wrote:
MaverickM11 wrote:
Not sure what US carriers were doing 17 years ago has to do with anything. Air Senegal has been recapitalized a zillion times. Does any of that make QR's $69MM loss any more believable? Is it normal to not have any mention of capacity in your annual report? :scratchchin:

The point was that even if they were overtly subsidized during the current air blockade it would be significantly more justifiable than the bailout of the U.S. carriers after 9/11 because that was a single event and this is an ongoing "war" that is directly impacting one of the nation's most valuable business assets by forcing them to fly uneconomic air routings.

Weren't they losing money prior to the blockade?

Not according to their published financial results.
2016: Net profit increased to $540m, a 21.7 per cent increase.

https://www.qatarairways.com/en-bd/pres ... cent-.html
 
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ClassicLover
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Re: Qatar Airways reveals loss for 2017/2018

Wed Sep 26, 2018 1:54 pm

MaverickM11 wrote:
Weren't they losing money prior to the blockade?


No, the net profit for the previous year was QR2.8 billion, which is about $769 million US.

So the blockade hit them hugely, but a loss of QR251 million - or $69.1 million US - shows they did a fantastic job despite the issues.
I do enjoy a spot of flying, especially when it's not in economy!
 
MaverickM11
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Re: Qatar Airways reveals loss for 2017/2018

Thu Sep 27, 2018 6:54 am

ClassicLover wrote:
MaverickM11 wrote:
Weren't they losing money prior to the blockade?


No, the net profit for the previous year was QR2.8 billion, which is about $769 million US.

So the blockade hit them hugely, but a loss of QR251 million - or $69.1 million US - shows they did a fantastic job despite the issues.

enilria wrote:
MaverickM11 wrote:
enilria wrote:
The point was that even if they were overtly subsidized during the current air blockade it would be significantly more justifiable than the bailout of the U.S. carriers after 9/11 because that was a single event and this is an ongoing "war" that is directly impacting one of the nation's most valuable business assets by forcing them to fly uneconomic air routings.

Weren't they losing money prior to the blockade?

Not according to their published financial results.
2016: Net profit increased to $540m, a 21.7 per cent increase.

https://www.qatarairways.com/en-bd/pres ... cent-.html

I'm aware they said they're profitable, but they show that basically all of that is from duty free, and on top of that EK reports a 30% higher RASK but QR reports double the profit margin for the same period? :scratchchin:
E pur si muove -Galileo
 
peterinlisbon
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Re: Qatar Airways reveals loss for 2017/2018

Sun Mar 03, 2019 6:09 pm

They didn't lose much - that's pocket change for Qatar's rulers. It's worth it for them to keep QR going given the amount of prestige it gives Qatar and how much it helps the country's economy in general.

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