Qatar Airways Group reports strong first half year financial performance

Qatar Airways Group has reported a ‘strong’ financial performance for the first half of 2023/2024.

Image: Qatar Airways

Qatar Airways Group reported a net profit of QAR 3.736 billion (US$ 1.026 billion) for first half of fiscal year 2023/2024 which represents an increase of 113.8% compared to the same period last year 2022/2023. The Group’s total revenue for first half of fiscal year 2023/2024 increased to QAR 40.126 billion (US$ 11.019 billion), up 7.4% compared to the same period last year 2022/2023. Passenger revenues rose 28.5% over the last year with increased load factors of 83.3% generating higher yields of 3.6%.  

Qatar Airways total passenger count for the first six months ending September-2023 increased to 19.078m, representing an increase of 22.5% compared to the same period last year. A key component of the commercial success of the business has been delivered through innovative partnerships within oneworld and through other global strategic alliances in Australasia, Europe and China in particular. Fleet expansion and loyalty programmes are pivotal to growth and Qatar Airways Group has around 150 aircraft on order to fulfil this increasing demand for passenger and freighter traffic. Operational efficiencies, innovation programmes and staff development have all additionally contributed to these results.

There are a number of headwinds facing the Group for the remainder of the year including geopolitical tensions in a number of parts of the world. This could have an impact on passenger demand for air travel, as well as potentially create operational constraints. The cost of fuel remains the single largest concern. Exchange rate fluctuations resulting from a strengthening US Dollar have impacted performance to date. A wide variety of operational measures have increased on-time performance to the highest levels experienced in recent years, which is a testament to the collaborative efforts of the leadership team. Management expects to continue the strong performance despite the headwinds in the second half of 2023-2024.

Qatar Airways Group chief executive, Akbar Al Baker, said: “Qatar Airways Group is a unique business that continues to perform at the highest level in the aviation industry. The FIFA World Cup Qatar 2022, created a very solid base on which to build Qatar’s ambition to grow as a leading tourism destination in the Middle East, one that focuses on refinement, culture, value and customer service and therefore being a family orientated destination. The interim results this year indicate that the Group is tracking towards another very strong year, which builds upon over US$ 2.750bn cumulative profits from the previous two years.”

The Group’s EBITDA margin of 26.9% for first six months of fiscal year 2023/2024 improved compared to same period last year 2022/2023 by 4.9 percentage points at QAR 10.779 billion (US$ 2.960 billion). EBITDA was higher than the same period last year 2022/2023 by QAR 2.641 million (US$ 0.725 million).

In early March the company announced a number of new routes including Chittagong, Juba, Kinshasa, Lyon, Medan, Toulouse, and Trabzon, most of which services have commenced to date. Qatar Airways also announced resumptions to 11 destinations: Beijing, Birmingham, Buenos Aires, Casablanca, Davao, Marrakesh, Nice, Osaka, Phnom Penh, Ras Al-Khaimah, and Tokyo Haneda. Up to 10 new destination have been identified additionally for 2024.