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Qatar Airways Reports $4bn Loss

Qatar Airways reported on Monday that it suffered a $4bn loss. The company reported the revenues over the last fiscal year, as lockdowns triggered by the coronavirus pandemic cut the need for long-haul travel.

The state-owned airline reported the major loss which was largely attributed to the grounding of its Airbus A380 and A330 wide-body jets, highlighting the dramatic toll of the pandemic on the industry. The airline reported an increase in earnings to $1.6bn before taxes and other costs compared to the previous year.

The costs dropped as the airline saved on jet fuel, reduced salaries by 15% and cut some 13,400 employees from its workforce. The pandemic has hit international routes the hardest, dealing a heavy blow to super connectors in the Persian Gulf that essentially lack domestic markets.Qatar Airlines has received a boost from an end to a yearslong boycott that locked Qatar Airways out of the airspace of Bahrain, Egypt, Saudi Arabia and the United Arab Emirates. The prohibition had forced the airline to take longer routes and consume more jet fuel, raising expenses.

Qatar Airways acknowledged receiving a $3bn lifeline from the Qatari government to keep operating as it struggled with virus restrictions. Revenue for the airline fell to over $8bn from $14bn the year before. The airline incurred taxes surged to $2.3bn over the grounding of its wide-body fleet. Qatar Airways took 5.8 million passengers to the skies in the last fiscal year. It is compared to 32.3 million the year before a staggering 82% drop.

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