Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Exclusive: Qatar Airways says it will need state support as cash runs out

Published 03/29/2020, 06:24 AM
Updated 03/29/2020, 07:05 AM
© Reuters. FILE PHOTO: Qatar Airway's Chief Executive Officer, Akbar Al Baker speaks at the opening session of a CAPA aviation summit, in Doha

By Alexander Cornwell

DUBAI (Reuters) - Qatar Airways will have to seek government support eventually, Chief Executive Akbar al-Baker told Reuters on Sunday, warning that the Middle East carrier could soon run out of the cash needed to continue flying.

Several states have stepped in to help airlines hammered by the coronavirus pandemic that has virtually halted international travel, with the United States offering $58 billion in aid.

Qatar Airways is one of few airlines continuing to maintain scheduled commercial passenger services and over the next two weeks expects to operate 1,800 flights.

"We have received many requests from governments all over the world, embassies in certain countries, requesting Qatar Airways not to stop flying," Baker said by phone from Doha.

The state-owned carrier is operating flights to Europe, Asia and Australia, repatriating people who have been left stranded after many countries shut their borders.

"We will fly as long as it is necessary and we have requests to get stranded people to their homes, provided the airspace is open and the airports are open," Baker said.

However, he warned that the airline was burning through cash and only had enough to sustain operations for a "very short period".

"We will surely go to our government eventually," Baker added.

He declined to say when the airline would need state aid, which could come in the form of loans or equity, but said it was taking measures to conserve cash.

Employees have taken paid and unpaid leave voluntarily and Baker said he had forfeited his salary until the airline returns to full operations. Staff would not be forced to take pay cuts, though Baker said some had offered to do so.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The airline had said before the pandemic it would report a loss this financial year because of a regional political dispute that forces it to fly longer, more expensive routes to avoid airspace that it had been banned from using by some of neighboring countries.

Rivals Emirates and Etihad Airways, of the United Arab Emirates, have grounded passenger operations, which Baker said had not benefited his airline.

Qatar Airways has been operating some flights at 50% occupancy or less and if it fills 45% of seats on flights over the next two weeks it will carry about 250,000 passengers.

“We are not taking advantage … this is a time to serve people who want to be with their loved ones in a very trying time," Baker said.

Latest comments

Yeah well the state has more than enough $ on hand.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.