Qatar Airways reports $1.21bn in net profit for FY2022-23

Passenger revenue rose by 100 per cent over last year, on a capacity increase of 31 per cent driven by 9 per cent higher yields and a load factor of 80 per cent

by Gulf Business

July 6, 2023

Image: Qatar Airways

Qatar Airways Group reported a net profit of QAR4.4bn ($1.21bn) for the fiscal year 2022-23. According to the airline, overall revenue increased to QAR76.3bn ($21bn), up 45 per cent compared to last year.

Passenger revenue grew by 100 per cent over last year, on a capacity increase of 31 per cent driven by nine per cent higher yields and a load factor of 80 per cent – both highest in the airline’s history, resulting in a sustainable increase in market share.

Additionally, the airline transported 31.7 million passengers, an increase of 71 per cent over last year.

The group reported a strong EBITDA margin of 23 per cent at QAR17.8bn ($4.9bn). It was higher than the previous year by QAR110m ($30.2m) as a result of streamlined, agile, and fit-for-purpose operations.

The Minister of State for Energy and Qatar Airways group chairman, Saad Bin Sharida Al-Kaabi, said: “I am delighted to announce that Qatar Airways Group has demonstrated another remarkable annual performance. Qatar’s transportation sector is an emblem of its interconnectivity, connecting people from around the world and increasing business connections throughout the region

“Qatar is proud to have hosted fans from around the world during the FIFA World Cup Qatar 2022, delivering one of the best FIFA World Cups in history. Qatar has set an unparalleled benchmark for tournament security and safety, creating a family-friendly destination of choice

Qatar Airways group chief executive Akbar Al Baker, said: “This year’s strong financial results are attributed to the strong passenger demand recovery and the team’s ability to cater to this demand, aided by our continuing network growth, market leadership, and the operational efficiencies delivered by our world beating team. Profitability has been driven by a 100 per cent increase in passenger revenues in the last year. Load factors exceeding 80 per cent, and the current yield levels are the highest in our history.

“As the global travel recovery from the Covid-19 pandemic continues, we have managed to retain the high levels of trust, reliability and confidence with our customers. As a result, we maintained our position as the airline of choice for millions of passengers worldwide and our team carried 31.7 million passengers, which is an increase of 71 per cent over last year.”

Other key highlights reported by Qatar Airways

Network: Qatar Airways network grew to more than 160 destinations in 2022-23. Qatar Airways resumed operations to 13 destinations namely Amritsar, India; Beijing, China; Denpasar, Indonesia; Geneva, Switzerland; London Gatwick, UK; Luxor, Egypt; Nagpur, India; Perth, Australia; Qassim, Saudi Arabia; Sarajevo, Bosnia and Herzegovina; Shanghai, China; Taif, Saudi Arabia; and Windhoek, Namibia.

The airline launched two new routes to Dusseldorf, Germany; and Santorini, Greece

FIFA World Cup Qatar 2022: As FIFA’s Official Partner and Official Airline Partner of the FIFA World Cup Qatar 2022, the airline operated around 14,000 flights bringing more than 1.4 million fans from all six continents toQatar.

Sponsorships: As the Official Airline Partner of Paris Saint-Germain since 2020, the airline took its partnership to new heights in June 2022, becoming the new Official Jersey Partner for the French football champions in a multi-year partnership, starting from the 2022-23 season.

In addition, it maintained partnerships with renowned global sporting clubs, including FC Bayern München, Al Sadd SC, Qatar National Football team, Brooklyn Nets, and the Sydney Swans.

Qatar Airways Group has recently become the Global Airline Partner of the Formula 1 racing series. The five-year partnership will see the airline have brand presence at 21 races and become the title sponsor of two races per year in addition to the F1 Qatar Airways Grand Prix Qatar 2023.

Additionally, Qatar Airways is now the official airline partner of the premier United Rugby Championship and European Professional Club Rugby competitions, connecting key travel markets across Western Europe and South Africa. The airline also entered into a partnership with club cricket giants, the Royal Challengers Bangalore, becoming the Indian Premier League team’s official front of jersey partner.

Loyalty programme: Privilege Club, the Qatar Airways loyalty programme, also witnessed significant growth in numerous new global and local partnerships, and enhanced proposition and revenues supported by the adoption of Avios as its currency

Privilege Club members now have the ability to access Qatar Airways Group using the Avios currency for payment in Qatar Duty Free, Discover Qatar, and Qatar Holidays, in addition to the existing list of leading global brands.

Private charters: Qatar Executive (QE), the VIP charter jet division of Qatar Airways, has also seen significant year-over-year growth. This has been represented by a tremendous increase in commercial sales revenue and total live flying hours, fleet growth, improvements made to better serve passengers flying with QE, and a record number of arrivals and departures at the Doha International Airport QE Premium Terminal.

Tourism: Over the past 12 months, Discover Qatar delivered a multitude of logistical arrangements and tourist experiences before and during the hugely successful FIFA World Cup Qatar 2022, to a wide variety of visitors and customers including FIFA delegates, tour operators, commercial partners, sponsors, and football fans.

The airline’s continued focus on customer experience, loyalty, digitalisation, and sustainability has placed it on a strong platform for the future.