Qatar Airways will skip handing out bonuses to almost 60,000 workers this year, according to a memo sent to employees this week that was seen by Bloomberg. The decision comes after the US-Israel war on Iran forced the carrier to cancel tens of thousands of flights and to lose out on billions in revenue.
The memo added that the continuing geopolitical situation in the Middle East continues to 'significantly affect' Qatar and the group. The decision 'prioritises long-term stability' as uncertainties prevail, according to the memo.
The Gulf carrier has spent decades positioning itself at the centre of global air travel, alongside giants like Dubai’s Emirates, and built its hub in Doha into a key stopover point for long-haul trips. So when disruptions hit in February, a delicately mapped out schedule for passengers, crews and aircraft got tossed out, stranding tens of thousands of travellers and hundreds of planes.
Bonuses for staff at Qatar Airways, which have only been paid out in the past three years, can range from a couple of weeks' compensation for non-managerial staff to months' compensation for executives and vice presidents, according to people familiar with the matter.
Elsewhere, Emirates employees received a smaller bonus this year than they did the previous year, people familiar with the matter have said. Singapore Airlines Ltd. handed out around 22 weeks' pay as a bonus, local media reported.
Qatar Airways has been looking for ways to preserve cash over the past few months, contacting several aircraft lessors to potentially defer or reduce rental payments, according to people familiar with the matter.
The conflict is the first major challenge for Qatar Airways’ new chief executive, Hamad Ali Al‑Khater, who’s only been in his role for a few months.
Qatar Airways, which saw profit drop about 10% to 7.08 billion Qatari riyals ($1.90 billion) in the latest financial year, did not immediately reply to a request for comment.
