Qatar Airways reports 8.6% rise in 2016 operating profit
The company reported a net profit of QR1.6 billion, resulting in a net profit margin of 4.5 per cent. Net profit for fiscal 2015 was 1.1 per cent, at QR374 million
MUSCAT: Qatar Airways Group announced a QR3 billion operating profit for fiscal year 2016— which is nearly three times greater than the fiscal 2015 profit of QR1.1 billion, resulting in an 8.6 per cent jump in operating profit margin, an improvement of nearly six percentage points from the prior year, from QR35.6 billion in revenues. The company reported a net profit of QR1.6 billion, resulting in a net profit margin of 4.5 per cent. Net profit for fiscal 2015 was 1.1 per cent, at QR374 million.
Qatar Airways Group’s Chief Executive Officer (CEO), Akbar Al Baker, said: “Qatar Airways continues to lead the industry in all aspects of the business, from our strong financial performance to our award-winning on board product. Our fiscal 2016 year was the best yet for the Qatar Airways Group, and our results reflect the discipline and dedication of more than 39,369 men and women, who proudly represent our airline and its associated brands.”
Reduced expenses
For the year ending March 31, 2016, Qatar Airways Group reduced its expenses by 1.5 per cent and increased its cash and bank balance from QR5.5 billion to QR12 billion, despite the significant growth in operations and an adverse movement in foreign currency exchange.
Over the course of fiscal 2016, Qatar Airways added 13 new destinations and expanded its overall network to more than 150 destinations on six continents.
The airline was also the global launch customer for the Airbus A350XWB, the most technologically advanced aircraft in the world, and was the first commercial airline to fly it to the United States. Three continents are now served with the A350: North America, Europe and Asia. The airline celebrated the delivery of its 25th Boeing Dreamliner, and now operates a fleet of 29 Boeing 787s. Celebrating another milestone in the fleet, the airline celebrated the delivery of its 50th Boeing 777, the backbone of its international network.
Qatar Executive, the private jet division of the Qatar Airways Group, became the launch customer for the Gulfstream G650ER, the world’s largest and fastest aircraft of its size. Qatar Executive now has two G650ER aircraft of the total order for 30 Gulfstream family aircraft.
Qatar Airways’ home and hub: the Hamad International Airport (HIA), proved more than capable of handling capacity traffic, serving a record number of travellers for the calendar year 2015, its first full year of operations, with more than 30 million people served, while simultaneously being named the Middle East’s Best Airport for the second year in a row, and for being the first Middle Eastern airport to be named among Skytrax’s World’s Top 10 Best Airports.
HIA, managed by Qatar Airways Group, introduced a new mobile app to help travellers navigate through the shopping, dining and other experiential opportunities that await them at the airport, and continue to advance the use of technology to create a “smart airport” that puts more control into the hands of the traveller.
Qatar Airways Cargo had a record-setting year too, growing to become the third-largest cargo operator in the world as of October 2015, and continuing to expand both its fleet and product line-up. Over the course of fiscal 2016, Qatar Airways Cargo increased its dedicated freighter destinations to 54, adding Dallas, Budapest, Prague, Ho Chi Minh City, and New York to the network. In addition, with the airline’s commercial growth, QR Cargo increased available tonnage worldwide by double digits this year and will continue to grow both organically, as the fleet is scheduled to grow to 22 aircraft by 2017; and through the airline’s growth in commercial service.
Qatar Airways also launched flights to a number of high profile destinations during fiscal 2016, including daily flights to Los Angeles in the United States and Sydney in Australia, further strengthening its overall route network relevancy for travellers globally. Its connectivity to the United Kingdom also increased to 73 weekly flights with the addition of Birmingham, its fourth United Kingdom destination.
The destinations Qatar Airways added during the 2016 fiscal year are; Abha, Amsterdam, Birmingham, Boston, Durban, Faisalabad, Los Angeles, Multan, Nagpur, Ras Al Khaimah, Sialkot, Sydney, and Zanzibar. Closer to home, the Doha-Dubai Shuttle was introduced, a first-of-its-kind flying experience between the two cities, with a customised service responsive to the specific needs of this heavily trafficked corridor.
Qatar Airways plans to launch 17 new destinations in the 20162017 fiscal year, with services to Adelaide, Atlanta, Marrakech and Yerevan having begun already.