BERLIN: Qatar Airways will report a second consecutive annual lost this year, its chief executive said on Wednesday, blaming higher fuel costs and unfavorable currency exchange rates.
The state-owned airline has rapidly expanded to new destinations since it lost access to 18 Middle East cities in 2017 due to a diplomatic rift between Qatar and some other Arab states.
“We announced a loss last year and we will announce another loss this year but it doesn’t mean that Qatar Airways is not going to expand or invest,” Akbar Al-Baker told reporters at the ITB travel fair in Berlin.
“We have a very strong balance sheet — regardless if we are temporarily making losses because of our additional operating costs, and the rising fuel price and the loss of (foreign) exchange.”
The airline’s financial year ends on March 31.
Qatar Airways lost access to cities in Saudi Arabia, the UAE, Egypt and Bahrain in June 2017 when those four countries cut ties with Qatar after accusing it of supporting terrorism. Qatar denies the charges.
The airline has also been banned from their airspace, meaning its flights to the west and south of the Gulf have to fly longer routes around the four countries, increasing its fuel costs.
The carrier reported a $69 million loss last year, which it blamed on the higher operating costs caused by the dispute.
Last year, Baker said the airline’s owners might have to put in additional equity if the dispute continued over the long term.
Qatar Airways to report second consecutive full year loss, says CEO
Qatar Airways to report second consecutive full year loss, says CEO
- The carrier reported a $69 million loss last year,
- Last year, Baker said the airline’s owners might have to put in additional equity
Closing Bell: Saudi main index rises to close at 11,251
RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Thursday, gaining 84.27 points, or 0.75 percent, to close at 11,251.81.
The total trading turnover of the benchmark index was SR5.38 billion ($1.43 billion), as 188 of the stocks advanced and 67 retreated.
Similarly, the Kingdom’s parallel market Nomu gained 157.22 points, or 0.67 percent, to close at 23,643.74. This comes as 44 of the stocks advanced while 32 retreated.
The MSCI Tadawul Index gained 10.88 points, or 0.72 percent, to close at 1,517.43.
The best-performing stock of the day was Saudi Kayan Petrochemical Co., whose share price surged 9.96 percent to SR5.30.
Other top performers included Ataa Educational Co., whose share price rose 9.94 percent to SR57.50, as well as Rabigh Refining and Petrochemical Co., whose share price surged 5.74 percent to SR7.55.
Saudia Dairy and Foodstuff Co. recorded the most significant drop, falling 5.93 percent to SR220.50.
Abdullah Saad Mohammed Abo Moati for Bookstores Co. also saw its stock prices fall 2.77 percent to SR43.56.
Zahrat Al Waha for Trading Co. also saw its stock prices decline 2.30 percent to SR2.55.
On the announcement front, Multi Business Group Co. reported its annual financial results for the year ended Dec. 31. According to a Tadawul statement, the firm recorded a net profit of SR352,172 during the year, down 98 percent from the previous year.
The company attributed the decline primarily to a 2 percent drop in building contracting revenues and a 73 percent decrease in gross profit.
Multi Business Group Co. ended the session at SR9.90, down 1 percent.
Hamad Mohammed Bin Saedan Real Estate Co. announced the signing of a memorandum of understanding with Saudi Awwal Bank to enhance collaboration in financing solutions, advance real estate development projects, and expand access to customer financing programs.
Hamad Mohammed Bin Saedan Real Estate Co. ended the session at SR6.67, up 1.21 percent.
