The Qatar Airways Group has turned in impressive results with its first half FY2023/24 performance.
The Group’s net profit, EBITDA, passenger revenues, on-time performance and load factors all demonstrate strong growth.
With ten new destinations on the horizon for 2024, the Group’s trajectory of expansion and growth is set to continue.
Ambitious Growth and Network Expansion
Qatar Airways Group has embraced ambitious yet sustainable growth, expanding its network to create lasting economic value for all stakeholders involved.
The successful return to service of the majority of the airline’s A350 fleet has been a pivotal milestone.
This achievement has significantly contributed to an overall 18% increase in Available Seat Kilometers (ASK) compared to the same period last year, showcasing the airline’s commitment to delivering quality service to its passengers.
The financial results for the first half of fiscal year 2023/2024 have been nothing short of impressive. Qatar Airways Group reported a net profit of QAR 3.736 billion (US$ 1.026 billion), marking a substantial increase of 113.8% compared to the same period in 2022/2023.
The total revenue for this period also saw substantial growth, reaching QAR 40.126 billion (US$ 11.019 billion), which represents a remarkable 7.4% increase compared to the previous year.
Passenger revenues have been a standout, surging by 28.5%, driven by increased load factors of 83.3%, resulting in higher yields of 3.6%.
Qatar Airways has seen a significant uptick in its total passenger count for the first six months ending in September 2023.
The number increased to 19.078 million, marking a notable 22.5% increase compared to the same period last year.
A cornerstone of Qatar Airways Group’s commercial success has been its innovative partnerships, not only within the oneworld alliance but also through strategic alliances in Australasia, Europe, and China.
These partnerships have played a vital role in driving growth and enhancing the customer experience.
To meet the increasing demand for passenger and freighter traffic, Qatar Airways Group has around 150 aircraft on order, demonstrating the airline’s commitment to staying at the forefront of the industry.
Operational efficiencies, innovation programs, and staff development have all contributed significantly to these impressive results, solidifying Qatar Airways Group’s position as a leader in the aviation sector.
Despite its remarkable achievements, Qatar Airways Group faces some headwinds in the remainder of the year. Geopolitical tensions in various parts of the world could potentially impact passenger demand for air travel and create operational constraints.
Additionally, the fluctuating cost of fuel remains a significant concern, while exchange rate fluctuations due to a strengthening US Dollar have affected the performance to date.
Nevertheless, Qatar Airways Group has taken various operational measures to enhance on-time performance, displaying the dedication and collaborative efforts of its leadership team. Management remains confident in the ability to navigate these challenges and sustain strong performance in the second half of 2023/2024.
Chief Executive Comments
Qatar Airways Group’s Chief Executive, His Excellency Mr. Akbar Al Baker, expressed his optimism about the airline’s future. He stated, “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™ laid a solid foundation for Qatar’s ambition to grow as a leading tourism destination in the Middle East, with a focus on refinement, culture, value, and customer service.”
“The interim results this year indicate that the Group is tracking towards another very strong year, building upon over US$ 2.750 billion in cumulative profits from the previous two years.”
Last month, the Group announced the appointment of Engr. Badr Mohammed Al-Meer to the lead role of Group Chief Executive for the airline.
This followed the news that His Excellency Mr. Akbar Al Baker is to step down from the position effective from 5 November 2023, after a remarkable 27-year tenure. The current positioning of the airline Group is a strong testament to his outstanding leadership during this time.
Expanding Horizons for 2024
In early March, Qatar Airways Group announced a host of exciting new routes, including Chittagong, Juba, Kinshasa, Lyon, Medan, Toulouse, and Trabzon, many of which have already commenced operations.
The airline also revealed resumptions to 11 destinations, including Beijing, Birmingham, Buenos Aires, Casablanca, Davao, Marrakesh, Nice, Osaka, Phnom Penh, Ras Al-Khaimah, and Tokyo Haneda.
With up to 10 new destinations identified for 2024, Qatar Airways Group is set to continue its trajectory of growth and expansion.