Qatar Airways' Earnings Down Almost $500Mln Last Fiscal Year Due To Blockade - Company

DOHA (Pakistan Point News / Sputnik - 19th September, 2018) Qatar's national carrier Qatar Airways's earnings were down about 1.76 billion Qatari Riyals (more than $480 million) in the 2017/2018 fiscal year ending March 31 because of the blockade imposed by neighboring countries, which forbids its aircraft to fly into their airspace, the airline reported on Tuesday.

"The Group generated EBITDAR [earnings before interest, taxes, depreciation, amortization and rent/restructuring costs] Margin of 23.0 per cent at QAR 9.714 billion. EBITDAR was lower than the previous year by QAR 1.759 billion due to longer flying time resulting from the illegal blockade and loss of departing seats from the blockading countries," the company said in a press release.

As indicated by the airline, in response to the blockade-linked closure of 18 routes, it began to fly in 14 new directions, increasing the number of new destinations to 24, which entailed costs associated with the need to strengthen its presence in new markets.

Qatar has been under a diplomatic and economic blockade since last June, when the United Arab Emirates, Saudi Arabia, Egypt and Bahrain cut off diplomatic relations and communication with Doha, accusing it of supporting terrorism and interfering in their internal affairs. Qatar has refuted the allegations.