Doha : Qatar Airways’ 2024-25 fiscal year profits, in the year ended March 31, will be “better than the previous years”, according to airline CEO Badr Al Meer. “With respect to profitability, the fiscal year ending March 31, which is 10-11 days away, the profits will be better than previous years,” stated Al Meer.
Last year, the state-owned airline posted a 39 per cent jump in annual net profit to a record 6.1 billion Qatari riyals ($1.67 billion). Revenue grew by 6 per cent to 81 billion riyals in the year ended March 31 2024, the government-owned airline had reported.
Al-Meer’s comments about profitability followed after the airline CEO officially announced the expansion of Qatar Airways’ home base in Doha – Hamad International Airport – with two new concourses – D and E.
New concourses to boost profit
The expansion has boosted the airport’s annual passenger capacity to 65 million. The new building now covers 842,000 square metres – a 14 per cent increase. The total number of boarding gates reached 62, following the addition of 17 new gates, a 40 per cent increase.
This achievement marks the final phase of the airport’s transformation journey, which began in 2022 with the opening of ‘Orchard,’ a 6,000-square-meter indoor tropical garden.
Al-Meer did not disclose specific budget details for DOH’s latest expansion project. However, he said. “The expansion costs are a confidential matter. While it is expected to increase the operating costs just like any associated with a larger terminal, I can reassure you that the expansion would add value and increase annual net profit.”
Airport authorities also said that the expansion has created numerous job opportunities, boosting employment in the aviation and hospitality sectors, without providing any numbers.
Will Qatar Airways IPO?
Al-Meer said this matter is under review by the Qatar Investment Authority and other government entities regarding privatisation and a potential IPO. If any decisions are made, they will be announced in due course.
GCC airlines, including Etihad Airways and flynas, are increasingly considering IPOs to capitalise on the resurgence of international travel.
Qatar Airways, however, remains active in strategic investments. The airline recently agreed to acquire a 25 per cent stake in Virgin Australia from Bain Capital. This acquisition also positions Qatar Airways as a cornerstone investor ahead of Virgin Australia’s anticipated IPO, strengthening its influence in the Australasian market.
New acquisitions?
When asked if there were any new acquisition plans for the airline in the pipeline, “We are very close with our equity investment in Rwanda Air, which is a good addition to our network. After Rwanda Air, we don’t have anything planned yet.”
Last year, Qatar Airways Group also acquired a 25 per cent stake in Southern Africa’s independent regional carrier, Airlink.
Regarding GCC airline profitability and potential mergers, like those of European carriers, Al-Meer stated that Qatar Airways has no plans for a merger. “Unlike European carriers, which often merge to avoid bankruptcy, Qatar Airways remains financially strong and independent,” he added.
Al-Meer also said that the Chinese market has been a key focus for Qatar Airways, with load factors exceeding 88–89 per cent. “Flights to and from China remain fully booked, generating significant revenue,” he stated.
