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Qatar Airways has posted record annual profits driven by strong travel demand in the Asia-Pacific region and the return to service of a large part of the carrier’s Airbus A350 fleet.
In its fiscal 2023/24 results for the year ended March 31, the group recorded profits of QAR6.1 billion ($1.7 billion) as revenues rose to QAR81 billion, up by 6% over fiscal 2022/23. Passenger revenue increased by 19%, with a capacity increase of 21% aided by the airline’s highest-ever load factor of 83%.
During the year, Qatar Airways saw the return to service of 30 A350s that had been grounded due to surface degradation issues. This came after the carrier reached a settlement with Airbus in February 2023, ending a public rift between the companies.
The airline says as a result of the fleet increase, its capacity and operations “have remained fully aligned,” leading to the resumption of flights to 14 destinations and the launch of new routes to cities including Medan, Indonesia; Lyon and Toulouse in France; Al Ula, Neom and Tabuk in Saudi Arabia; and Trabzon, Turkey.
“Our continued focus on profitability, efficiency and customer experience have been underpinned by a strategic program of network growth and fleet expansion, resulting in the highest revenues and profit margins in the history of the airline,” CEO Badr Mohammed Al-Meer says.
The record load factor of 83% has been driven by strong travel demand in Asia-Pacific, with the removal of China’s last COVID-19 restrictions during 2023 enabling the Oneworld member to fully resume its Chinese network. It also launched a codeshare partnership with China-based carrier Xiamen Airlines.
Additionally, Qatar Airways has expanded its capacity and footprint in Europe, with German capacity rising by 31% versus 2019 due to the incremental frequencies for Düsseldorf and Berlin. Capacity to Spain has also expanded, with frequency increases to both Barcelona and Madrid.
The airline ended its fiscal 2023/24 with a fleet of 284 aircraft, of which 230 are for passengers, 29 for Qatar Airways Cargo and 25 for Qatar Executive. An additional 25 aircraft joined the fleet during fiscal 2023/24, comprising nine Boeing 737-8s, seven 787-9s, three 777-300ERs, one 777-F and five A350-100s.
In June, Aviation Week reported that Qatar Airways has issued a request for proposals to both Airbus and Boeing for additional widebodies as the airline seeks to expand its aircraft order book as well as harmonize the structure of its fleet. It is understood to be considering large additional orders for the A350 and the 777X.
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