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Qatar Airways has announced an enormous annual profit of $3.34 billion, weeks before it begins services to Doha with Virgin Australia.
The airline said the figure was 28 per cent higher than the previous year and was also the strongest set of financial results in its history.
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Qatar announced last year it would purchase a stake in the Australian airline and, as part of the agreement, would wet lease aircraft and crew to Virgin so it could fly 28 services a week to the Middle Eastern country’s capital.
It means Virgin will again challenge Qantas to restart long-haul international services after losing billions during the so-called capacity wars before its administration.
Qatar’s colossal profit compares to the $2.08 billion released by Qantas in August last year and the $236 million half-year results recorded by Virgin.
The airline said in a statement that its achievements also included the expansion of Hamad International Airport, enabling it to cater for 65 million passengers annually and also acquiring 25 per cent of South African regional airline, Airlink.
The airline’s chief executive, Badr Mohammed Al-Meer, said, “These record-breaking results are a testament to the hard work, skill and dedication of teams across all of Qatar Airways Group.
“I know that none of the outstanding results we’re announcing today would be possible without our people – more than 55,000 of them across the globe – and it’s our focus on fostering that talent, which has been a core focus of our Qatar Airways 2.0 strategy.”
The federal government, earlier this year, gave Qatar Airways the green light to buy 25 per cent of Virgin Australia, while the ACCC also signed off on the deal.
Services will begin in Sydney on 12 June, Brisbane on 19 June, Perth on 26 June, and Melbourne on 1 December.
However, in a significant concession, Treasurer Jim Chalmers said Virgin had agreed to explore dry lease options that could potentially see its own crew operate the flights within three years.
Under a “structured secondment program”, 20 pilots and 40 cabin crew will be sent to Doha this year to gain experience with long-haul flying, with their positions to be backfilled by 60 new Australian staff.
That came after Transport Minister Catherine King controversially rejected a separate attempt for Qatar to launch more international flights directly in 2023.
The promise to explore dry lease options, therefore, allowed the federal government to claim the new agreement was substantially different from the old one and head off criticism from Qantas.
“On the advice of the Foreign Investment Review Board, I have approved this proposal subject to legally enforceable conditions that ensure Australian representation on Virgin’s board and protection of its customer data,” Chalmers said.
“It will increase Virgin Australia’s capacity on key international routes and provides a long-term pathway for the airline to operate its own long-haul flights.
“The proposal is also expected to deliver broader economic benefits including more job creation in Australia, support for the tourism industry and enhancing Australia’s position as a key travel hub.”
