Qatar Posts $4.1 Billion Loss
Qatar Airways released its annual report for its 2020-21 fiscal year which ended in March, and the carrier posted a loss of a whopping $4.1 billion, more than double the $1.9 billion it lost a year ago.
This is the fourth consecutive year Qatar posted a loss, but this year’s loss is more than the previous three combined. Qatar CEO Akbar Al Baker blamed much of the loss ($2.3 billion) on the charge related to the grounding of its A330 and A380 fleets. It should also blame flying way too many flights to places where there’s not enough demand, but that would be too easy. Besides, that’s been Qatar’s game plan since the beginning of time, so it’s nothing new.
Qatar was down to just 33 destinations at the pandemic’s worst point but is back operating to 140 destinations around the world. The carrier flew 5.8 million passengers earning $8 billion in revenue. It also received $3 billion from the Qatari government, paid as a combination of cash and BOGO coupons at Doha-area KFC locations.
The carrier closes the fiscal year with about $600 million cash on-hand, most of which is tied up in gold futures to finish outfitting its premium cabins.
Oman Air Wants to Join Oneworld
Oman Air wants to apply to join oneworld after seeing the fun Alaska has been having at the alliance’s social outings including the summer BBQ in Fort Worth and the most recent retreat in Hong Kong. The carrier is asking Qatar Airways to guide its entry into the club, and hopes to join by the end of 2022.
Oman and Qatar have a lot of overlap in their networks and the two do compete with each other, but Oman is not the threat to Qatar that Emirates is. In fact, AA directed Qatar to tell regulators that Qatar and Oman Air may work together on this one narrow item, but they compete ferociously elsewhere outside of the Northeast Middle East.
Qatar’s CEO, Akbar al Baker is currently the Chairman of oneworld and the self-proclaimed Grand Poobah of the airline industry. Neither Qatar nor its CEO had any comment on Oman Air’s desire to join the alliance other than to say it was just getting used to Alaska being let it in, and it wasn’t sure if there was room in the clubhouse for another member.
United Fined $1.9 Million over Tarmac Delays
United Airlines was fined $1.9 million by the DOT for violating the federal government’s tarmac-delay rule relating to 25 United flights. The carrier will be required to pay half in cash and will receive credit for the other half of the fine through compensation paid to passengers on the delayed flights… and as reparations for having a hub at Newark.
United agreed to pay the fine without admitting any wrongdoing, which is the same mindset of most middle school kids toiling away in detention in classrooms across the country. The 25 flights affected 3,218 passengers between December 2015 and February 2021 which seems to be an awfully arbitrary time period over which to fine the carrier, but the federal government likes keeping everyone on its toes.
- Air Canada‘s Aeroplan is offering a status match for U.S.-based flyers who are elite members of six U.S. programs, sponsored by Destination Canada. To match to Aeroplan, customers are required to visit Air Canada’s website, chug a bottle of maple syrup, and take an online politeness course.
- Alaska elites flying basic economy on American will no longer receive all of their elite benefits. Quite frankly, they’re lucky to receive any benefits and should be thankful they’re still given a seatbelt when purchasing a basic fare.
- Allegiant is leaving Cleveland, with the airline announcing it will stop serving the airport next year. Allegiant currently accounts for about 3% of the traffic at the airport.
- American and JetBlue‘s Northeast Alliance will remain in effect during the DOJ’s lawsuit, according to the FAA.
- Atlas Air will wet-lease two more B747-400 freighters to FedEx Express as part of a new long-term agreement between the two.
- British Airways will resume flying to San Diego with 3x-weekly service from London/Heathrow on October 13. The route will then operate daily beginning December 8.
- flycana is rebranding as Arajet.
- Iberia and Air Europe are both planning for significant furloughs after the Spanish government’s job protection funding is scheduled to expire on Thursday.
- Jazeera Airlines took delivery of a new A320neo — the carrier’s 16th aircraft — on Saturday.
- Qantas will no longer operate between Perth and London when international flights resume for the carrier in December. The carrier will swap Darwin (DRW) in for Perth and operate the flight from the Northern Territory airport until Western Australia reopens.
- Rex will keep its B737s grounded until at least the end of October. Somehow this is Qantas’s fault.
- Singapore is resuming its services from San Francisco to Hong Kong and from New York/JFK to Frankfurt in November. Both will restart on November 2, with SFO-HKG operating 3x-weekly and JFK-FRA operating daily.
- Spicejet made a dill to pay off most of its debts with a sale of its cargo and logistics business. The carrier cayenne ship anything without going through a third-party cargo company.
- SKY Express is beginning A320 service between Thessaloniki (SKG) and Larnaca (LCA) on October 31 with 4x-weekly flights.
- Virgin Australia ruled out the possibility of the B777 returning when the carrier resumes flying to international destinations.
I put together a Powerpoint presentation on why our next family trip should be at a water park. It has several slides.