Qatar Airways has just reported a profit of $1.2 billion in the last financial year thanks to a bumper World Cup season last December.
In a new report, the airline said it operated around 140,000 flights carrying more than 1.4 million people to Qatar during the 2022 World Cup. Chief Executive Akbar Al Baker said profitability was boosted by a 100% increase in passenger revenue last year.
“We maintained our position as the airline of choice for millions of passengers around the world and our fleet carried 31.7 million passengers, an increase of 71% compared to last year,” said Mr. Akbar Al Baker.
Before the World Cup, questions were raised about whether the tiny nation of Qatar, with a population of just 3 million, had the infrastructure to host an international tournament. But after winning the bid, it invested an estimated $220 billion in developing transportation systems and housing to accommodate spectators.
Planes with messages promoting the 2022 World Cup. Photo: Qatar Airways
Qatar Airways' strong year has raised hopes for AirFrance-KLM as France hosts the Olympic and Paralympic Games next year. Air France is the official partner for the event. The AirFrance-KLM group reported revenue of more than $8 billion in the second quarter, up nearly $1 billion from the same period last year, despite inflation.
“The situation at airports is much better, including KLM’s hub at Amsterdam Schiphol,” said Benjamin Smith, CEO of Air France-KLM, who sees this year’s business season as a test run for 2024, when the Olympics will take place in France.
Along with Qatar Airways and Air France-KLM, many major international airlines have also reported significantly improved profits this year, thanks to strong demand for leisure travel .
International Airlines Group (IAG), the parent company of Aer Lingus and British Airways, reported a record profit of around $1.4 billion for the first half of 2023 on July 27. IAG CEO Luis Gallego said the group is aiming to return to pre-pandemic capacity by the end of the year. "Customer demand remains strong across the group, particularly in leisure travel, with around 80% of passenger revenue in the third quarter prepaid," he said.
Still, some industry leaders say the strong growth may not last. Earlier this week, Ryanair, Europe’s largest airline by passenger numbers, warned that high inflation and rising interest rates could make travel more difficult this fall and winter.
Even as Ryanair reported a $735 million profit in the second quarter, CEO Michael O'Leary said the company remains "concerned about the impact of these macroeconomic trends."
He added that the airline may need to cut fares to meet its ambitious passenger growth targets. But the major airlines do not appear to be having trouble filling seats at the moment, with IAG reporting a seat occupancy rate of around 84% and AirFrance-KLM at 87%.
Phien An ( according to CNN )
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