Qatar Airways has reported a 45 per cent increase in revenue in its last fiscal year, despite a drop in net profit, after its passenger numbers received a big boost from the Fifa World Cup that was hosted by the Gulf state in 2022.
Revenue rose to 76.3 billion Qatari riyals ($21 billion) in the 2022-2023 fiscal year, with passenger revenue rising by 100 per cent annually, the airline said on Wednesday.
Qatar Airways carried 31.7 million passengers, an increase of 71 per cent over the previous year.
Capacity increased by 31 per cent, driven by 9 per cent higher yields and a load factor of 80 per cent – both the highest in the airline’s history, it said.
Meanwhile, the airline's net profit fell by more than 21 per cent to 4.4 billion riyals during the period, compared with 5.6 billion riyals in the previous year.
Earnings before interest, taxes, depreciation and amortisation (ebitda) were higher than the previous year by 110 million riyals, it said.
“Qatar’s transportation sector is an emblem of its interconnectivity, connecting people from around the world and increasing business connections throughout the region,” said Saad Al-Kaabi, Minister of State for Energy and Qatar Airways group chairman.
“Qatar is proud to have hosted fans from around the world during the Fifa World Cup Qatar 2022, delivering one of the best Fifa World Cups in history.”
The Gulf country's hosting of the $220 billion grand sporting event spurred tourism, with its economy receiving a huge boost.
The overall attendance at World Cup matches was 3.4 million, the Qatar News Agency reported.
Qatar Airways, the event's partner, operated about 14,000 flights that brought in more than 1.4 million passengers to the country over the period of the tournament, it said.
The airline also expanded its network to more than 160 destinations in the 2022-2023 fiscal year amid a rebound in travel demand.
Qatar Airways resumed operations to 13 destinations and launched two new routes to Dusseldorf in Germany and Santorini in Greece during the period.
The Doha-based airline could increase its number of destinations to 190, from 177, depending on aircraft deliveries from Boeing and Airbus, Akbar Al Baker, group chief executive of Qatar Airways, said in May.
The carrier is experiencing a delay in the delivery of Boeing 787 and 777x aircraft, he said.
Qatar Airways expects to take delivery of A350s and A321neos from Airbus in the “distant future” after the two companies settled a dispute over A350 jets in February, Mr Al Baker said.
“We had an amicable settlement with Airbus and the aircraft deliveries that were cancelled have been reinstated.”
The global aviation industry is recording a surge in travel demand as Covid-19 restrictions have been lifted around the world.
International passenger traffic grew by 48 per cent annually in April after China reopened its borders to travellers, the International Air Transport Association said in its latest report.
Industry-wide revenue passenger-kilometres also increased by about 46 per cent to hit 90.5 per cent of pre-Covid levels, it said.
“This year’s strong financial results are attributed to the strong passenger demand recovery and the team’s ability to cater to this demand, aided by our continuing network growth,” said Mr Al Baker.
“Profitability has been driven by a 100 per cent increase in passenger revenues in the last year. Load factors exceeding 80 per cent, and the current yield levels are the highest in our history.”
Going grey? A stylist's advice
If you’re going to go grey, a great style, well-cared for hair (in a sleek, classy style, like a bob), and a young spirit and attitude go a long way, says Maria Dowling, founder of the Maria Dowling Salon in Dubai.
It’s easier to go grey from a lighter colour, so you may want to do that first. And this is the time to try a shorter style, she advises. Then a stylist can introduce highlights, start lightening up the roots, and let it fade out. Once it’s entirely grey, a purple shampoo will prevent yellowing.
“Get professional help – there’s no other way to go around it,” she says. “And don’t just let it grow out because that looks really bad. Put effort into it: properly condition, straighten, get regular trims, make sure it’s glossy.”
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
UAE currency: the story behind the money in your pockets
