Qatar Airways (QR, Doha Hamad International) may need to seek an additional capital injection from its state owner as the blockade imposed by some of the fellow Arab countries puts a large financial strain on the Qatari carrier, CEO Akbar Al Baker has told Reuters TV.
"Not for the foreseeable future, but if it continues long term our shareholders will have to put additional equity into the company," Al Baker has said.
Qatar Airways has been adamant in the past that it does not receive any hidden state support, a charge which has been levied at the carrier mainly by the largest airlines from the United States. Al Baker has also repetitively underlined that contrary to its American counterparts, Qatar Airways cannot use a mechanism comparable to the Chapter 11 bankruptcy protection.
Short of disclosing any exact numbers, Al Baker admitted that the airline will post a "very large loss" for the financial year ending on March 31, 2018.
The Qatari carrier has faced operational difficulties since June 5, 2017, when Saudi Arabia, the United Arab Emirates (UAE), Bahrain, and Egypt, collectively severed diplomatic ties with Doha and closed their respective airspaces to Qatar-registered aircraft, accusing Doha of supporting terrorism, a charge that Qatar denies. This blockade subsequently forced Qatar Airways to cut some 20% of its capacity, in addition to re-routing a number of flights to avoid embargoed airspace.
